Oligopolistic companies, which are a few big firms in an industry, often work like they’re dancing with each other. Here’s how they do it:
Price Leadership: One company decides on a price, and the others usually set their prices the same way to stay competitive.
Collusion: Sometimes, they secretly agree on prices to make more money together, but this is often illegal.
Non-price Competition: Instead of just changing prices, they try to win customers by using better marketing, making their products stand out, or offering great customer service.
These strategies help them stay in the game while dealing with their competitors!
Oligopolistic companies, which are a few big firms in an industry, often work like they’re dancing with each other. Here’s how they do it:
Price Leadership: One company decides on a price, and the others usually set their prices the same way to stay competitive.
Collusion: Sometimes, they secretly agree on prices to make more money together, but this is often illegal.
Non-price Competition: Instead of just changing prices, they try to win customers by using better marketing, making their products stand out, or offering great customer service.
These strategies help them stay in the game while dealing with their competitors!