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CHARACTERISTICS

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 hAME THEORY

Soft Drink Advertising

 


 

 

 

THE KINKED DEMAND CURVE


 
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|HY OLIhOPOLIES DO NOT LIKE TO REDUCE OR INCREASE PRICE OF THEIR PRODUCT

1. REDUCTION IN PRICE

2. INCREASE IN PRICE

3. RIhID PRICE
OLIhOPOLY AND NON-PRICE COMPETITION

THE IMPORTANCE OF NON-PRICE COMPETITION UNDER OLIhOPOLY

 


   
 


   





    
PRICE LEADERSHIP

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Price Leadership arises due to following circumstances

1. LO|ER COSTS & ENOUhH FINANCIAL RESOURCES

2. SUBSTANTIAL SHARE OF THE MARKET

3. A REPUTATION FOR SOUND PRICINh DECISIONS

4. INITIATIVE

5. AhhRESSIVE PRICINh
CASE STUDY

The brewing industry was once held to competition among many breweries in
small geographic areas. That was almost a century ago. The U.S. brewing
industry today is characterized by the dominance of three brewers. There are
many factors today that make the beer industry an oligopoly. Such factors
include various advancements in technology, takeovers and mergers, economies
of scale, barriers to entry, high concentration, and many other factors. How the
beer market has turned itself into an oligopoly in the past 100 years?