In oligolopy another firm can, acting alone, have an impact, a situation unique to oligopoly. Suppose after JVC sets price and output at P1, Q1 Sony brings out a new 32 inch TV and launches a new advertising campaign, shifting JVC's demand and marginal revenue curves back to D2 and MR2. In which case JVC's profit maximizing price and output should have beenP2, Q2. In oligopoly knowledge of the other firm's behavior would be at least as valuable as market data.

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