5 Written questions
5 Matching questions
- Tit-for-Tat Strategy
- Balanced Oligopoly
- Concentration Ratio
- Nash Equilibrium
- Unbalanced Oligopoly
- a A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
- b An oligopoly in which the sales of the leading (top four) firms are relatively balanced among them.
- c An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
- d Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
- e A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
5 Multiple choice questions
- A business arrangement in which two or more firms undertake a specific economic activity together. Once the activity is over, the firms go their own way.
- A merger between firms who have a buyer/supplier relationship. Example: BFGoodrich merging with rubber plantations.
- The demand curve faced by an oligopolist. The curve is more elastic when the firm raises its price than when it lowers its price.
- A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
- A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
5 True/False questions
Price Discrimination → Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.
Merger → A combination of two or more companies into one company.
Godfather → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Price Leadership → A firm whose price decisions are tacitly accepted and followed by others in the industry.
Conglomerate Merger → A merger between two firms in the same industry. Example: 2004 K-Mart merged with Sears