In 1998‚ the Industry was in a state of Duopoly‚ with the only players being Eircell‚ with 330‚000 customers‚ and Esat Digifone‚ with 80‚000. Market penetration was a mere 11%‚ having grown by 4% since the previous year (ComReg‚ 1999). On December 1‚ the industry was deregulated and a competition for the awarding of a third telecom licence was held. With the view‚ expressed by Etain Doyle‚ Director of Telecommunications Regulation‚ to “increase competition and choice” which would bring about “lower
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an investment that alters its own and/or its rival’s competitive responses. In contrast‚ a soft commitment is one that‚ no matter what its competitors do‚ the firm will behave less aggressively than if it had not made the commitment. Thus‚ in a Cournot game a soft commitment will cause the firm to produce relatively less output‚ while in a Bertrand game a soft commitment will induce the firm to charge a higher price than if it had not made the commitment. 2. How are commitments related to sunk
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) 3. Ethnicity African ( ) Amerindian ( ) European ( ) Portuguese ( ) East-Indian ( ) Mixed ( ) 4. What type of market structure exists in the telecommunications industry? Monopolistic ( ) Perfect Competition ( ) Monopoly ( ) Duopoly ( ) 5. What are the characteristics of the market structure of the telecommunications industry? Two firms ( ) Barriers to entry and exit ( ) Homogeneous and defrenciated products ( ) All of the above ( ) 6. What are the two existing
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DEPARTMENT OF ECONOMICS Economics 340H – FA 07 OSH Assignment #3 Instructor: Christopher Michael Due Date: Dec 6‚ 2007 Question 1 – Perfect Competition and Monopolistic Competition Superior Metals Company has seen its sales volume DECLINE over the last few years as the result of rising foreign imports. In order to INCREASE sales (and hopefully‚ profits)‚ the firm is considering a price reduction on luranium‚ a metal that it produces and sells. The firm currently sells 60‚000
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Introduction As time passes by‚ technology continues to evolve. Because of technology‚ new things were created that sustains and lightens human work. Computers were created because of technology. Computers were the greatest thing ever invented by man itself. In the modern age‚ computers have become a part of man’s life. Almost all the things around us were made by computers with the aid of modern machines. From the edited books‚ design‚ special effects in movies‚ and televisions etc.‚ were
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increased in recent years. Although dial-up subscriptions currently dominates the Internet market‚ we project broadband subscribers to account for nearly 65% of Internet subscribers in coming few years. Keeping in view that the UAE telecom market remains duopoly of Etisalat and du and their importance in the success of the country’s telecom sector‚ the report offers rational analysis on both these
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change in price‚ output or forms of nonprice competition. 4. Non-price competition: Non-price competition is a consistent feature of the competitive strategies of oligopolistic firms. Duopoly Duopoly is a form of oligopoly. In its purest form two firms control all of the market‚ but in reality the term duopoly is used to describe any market where two firms dominate with a
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Monopolistic competition was identified firstly by Edward Chamberlin and Joan Robinson in 1930. (Economiconline) • Oligopoly: is the market in which there are some companies‚ their business affects companies remaining. (BPP 2010‚ page 249) • Duopoly: is the market in which there are two sellers who compete with each other with identical goods. Other companies’ output is seen to be fixed. This case stays between monopoly and competition. (BPP 2010‚ page
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normally unattainable in practice and is often used as a comparative tool by economists to evaluate different markets. In terms of competitive nature‚ we can classify real world organisations under the following headings‚ Monopoly‚ Monopsony‚ Oligopoly‚ duopoly and Monopolistic Competition. Monopoly In the UK‚ a business controlling 25% of the market is considered a monopoly. According to Stigler‚ G (2008) a monopoly is “an enterprise that is the only seller of a good or service”. In order for a true
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and its only two operating companies Sirius Sattelite Radio‚ and XM Radio. These companies‚ despite obvious duopoly advantages and some early succeses‚ were too heavily leaden with debt‚ resulting in a controversial merger worth billions. Even after the merger the company struggled to cope. I chose this company because of the interesting nature of these two companies with an immediate duopoly of the newly created industry‚ and the controversial nature of the decision that allowed them to merge.
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