13637657
Description
Mind Map by Jia Jun Neo, updated more than 1 year ago
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Created by Jia Jun Neo
about 6 years ago
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Firm strategy
- Pricing
- Elasticities
- PED
- YED
- XED
- PES
- PED
- Px taker
- Accepting the Px
mkt determines
- e.g PC Firms
- e.g PC Firms
- Accepting the Px
mkt determines
- Price rigidity
- ↓ Px, rivals will follow suits,
but when ↑ Px, rivals will
not follow suit
- Kink DD theory
- e.g Oligopoly
- e.g Oligopoly
- Kink DD theory
- ↓ Px, rivals will follow suits,
but when ↑ Px, rivals will
not follow suit
- Px setter
- Limit pricing
- below the short run
profit-maximising price
- To drive out
competition
- e.g monopoly
- e.g monopoly
- To drive out
competition
- below the short run
profit-maximising price
- Predatory pricing
- keep price below AC
- keep price below AC
- Limit pricing
- Profit
maximisation
MC = MR
- Elasticities
- Non-Price
- R & D
- i.e Real
differences
- improve the quality and the
features of the good
- ↑ price
inelastic
dd
- ↑ prices
- ↑ prices
- ↑ price
inelastic
dd
- i.e Real
differences
- A&P/Branding
- i.e Imaginary
differences
- ↑ awareness
and the appeal
- ↑ DD of the good
- ↑ DD of the good
- i.e Imaginary
differences
- R & D
- Others
- Output
strategy
- ↑ output
- ↓ output
- Produce at
MC = MR
- Produce at
MC = MR
- ↑ output
- Alt Objs
- LT profit maximisation
- Growth maximisation
- Corporate image
- Growth maximisation
- LT profit maximisation
- Collusion
- Formal
- Explicit price-fixing
- Cartels
- Act like 1 big monopoly
- Act like 1 big monopoly
- Cartels
- Explicit price-fixing
- Tacit/Informal
- Price leadership
- Dominant firm establishes
price/price changes
- Dominant firm establishes
price/price changes
- Price leadership
- Formal
- M&A
- Cost adv
- IEOS
- Remove
duplication
- ↓ Adv cost
- IEOS
- Revenue adv
- ↑ DD
- ↑ Px
Inelastic
DD
- R&D
- ↑ DD
- Cost adv
- Output
strategy
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