Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others.
Brand poliferation: A brand is a name and symbol and with this symbol, ideas associated with a product:
For examples:
Sony -- television set, walkman, beta failure
Mercedes-Benz -- expensive German cars.
Heinz -- ketchup
Apple -- expensive, classy very design computers
brand proliferation is when a company puts on the market a product and variants of a product under different names.
Example:
Heinz would produce the standard ketchup, the 57 brand and then a cheaper ketchup called "the Red one" and an other one called the "H ketchup", very expensive with a special bottle and so on.
Contestable markets:
William Baumol defined contestable markets as existing where “an entrant has access to all production techniques available to the incumbents, is not prohibited from wooing the incumbent’s customers, and entry decisions can be reversed without cost.”
For a contestable market to exist there must be low barriers to entry and exit so that there is always the potential for new suppliers to come into a market to provide fresh competition to existing suppliers. For a perfectly contestable market, entry into and exit out of the market must be costless
Limit pricing: In limit pricing models a dominant firm maximizes its profits by chosing a price that is low enough to discourage some but perhaps not all entrants into the market.
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