The presence of co-ops is shown to increase the rate of technological innovations in these markets in agricultural industries, and one behavior in this situation states that the minor firms will follow the lead of another firm's decisions on quantity in the Stackelberg model.
The presence of co-ops is shown to increase the rate of technological innovations in these markets in agricultural industries, and one behavior in this situation states that the minor firms will follow the lead of another firm's decisions on quantity in the Stackelberg model. Simultaneous determination of prices occurs in the Bertrand model for them, which suggests that firms may use marginal-cost pricing, while firms simultaneously determine output in the Cournot model for these markets. Kinked demand explains why lowering price from the equilibrium is unprofitable in this situation, and it is assumed to exist when four firms have greater than 40% of the market share. The beer and steel industries are examples of, for 10 points, what types of markets dominated by a few firms.
The presence of co-ops is shown to increase the rate of technological innovations in these markets in agricultural industries, and one behavior in this situation states that the minor firms will follow the lead of another firm's decisions on quantity in the Stackelberg model.
{oligopoly}