sustainability. Keywords: Low cost airlines‚ Pricing Strategies‚ Game theory 1. Introduction Business is a high staked game. Branderburger (1995) notes that essence of the business success lies on playing the right game. In the context of oligopoly and duopoly low cost airlines market structure‚ an airline company that lower the price of its tickets will affect not only its own profitability but also the profitability of its competitors since a lower price will influence consumers’ decision making. Regional
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supermarket market. Woolworths is the largest supermarket/grocery store chain in Australia‚ owned by Woolworths Limited. Along with Coles‚ Woolworths form a near duopoly of Australian supermarkets‚ together accounting for about 80% of the Australian market. Although the Australian expansion of Aldi has seriously challenged this duopoly in recent years. The competitors of 7-11 I have discussed above are the petrol station instead of supermarket. As we all know‚ the petrol supplier of 7-11 is Mobil
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al little‚ sm s“ k. Oligo l‚ G 95‚ from in plura to sell” 18 polein “ “few” + l” DEFINITION ! A situation in which a particular market is controlled by a small group of firms. ! An oligopoly is much like a monopoly‚ in which only one company exerts control over most of a market. In an oligopoly‚ there are at least two firms controlling the market. The retail gas market is a good example of an oligopoly because a small number of firms control a large majority of the market. An
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Case Study: British Telecom: Searching for a winning strategy Tuomo Summanen Michael Pollitt Judge Institute of Management November 2002 1. Introduction The development of the telecommunications market in the United Kingdom and the corporate strategy and development of the incumbent‚ British Telecom‚ represents an interesting object of analysis for several reasons. First‚ the UK telecommunications market was - along with the U.S. market - among the first telecommunications market that
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EXECUTIVE SUMMARY IT had become a problem for Charles Schwab & Co.‚ a big financial services company. IT staffers’ responses to business requests had become slow and expensive but the company kept throwing money at overdue projects because it didn’t see an alternative. For years now‚ companies like Schwab seeking to deliver higher business performance by harnessing IT have focused on alignment. But even at companies that were focused on alignment‚ business performance dependent on IT sometimes
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is well known that Intel and AMD are the two world market leaders in the production of microprocessors. Intel has a market share of 81.7%‚ while AMD has a market share of 16.9%. Intel is the larger and historically older of the two companies. A duopoly is de ned as a market in which the greatest part of the market share is held by 2 companies but in our case there are companies with uneven market shares. The microprocessor market can be de ned as a oligopoly with an incumbent and a fringe rm
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Review of Industrial Organization 19: 37–48‚ 2001. © 2001 Kluwer Academic Publishers. Printed in the Netherlands. 37 Is Competition Such a Good Thing? Static Efficiency versus Dynamic Efficiency MARK BLAUG University of Amsterdam‚ Amsterdam‚ The Netherlands Abstract. This paper addresses the rationale for antitrust legislation. It is a striking fact that the legitimacy of antitrust law has been taken for granted in the United States ever since the Sherman Act of 1890 and‚ until the advent
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extremely low threat of new entrants. It was all due to the duopoly which was existent at that time. The duopoly consisted of Eircell (which was later bought by Vodafone in 2001) and Esat Digifone
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Lesson - 1 Business Economics- Meaning‚ Nature‚ Scope and significance Introduction and meaning : (Author : Dr. M.S. Khanchi) Business Economics‚ also called Managerial Economics‚ is the application of economic theory and methodology to business. Business involves decision-making. Decision making means the process of selecting one out of two or more alternative courses of action. The question of choice arises because the basic resources such as capital‚ land‚ labour and management are limited and
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oligopoly are affected. Business decisions must always consider competitor’s influence / reaction. An oligopoly may agree to maintain artificially high prices – technically illegal but difficult to prove if nothing is in writing. Duopoly – taken literally a duopoly means 2 firms control a market. In reality is usually means that 2 firms dominate a market by having the biggest share in it. Examples of duopolistic markets include Coca Cola and Pepsi as dominant suppliers of soft drinks. There
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