Ibus Chap11

  1. Collusions?
    Collective attempts between compteing firms to reduce competition.
  2. Tacit Collusion?
    Firms indirectly coordinate actions by signaling their intention to reduce output and maintain pricing above competitive levels.
  3. Explicit Collusion?
    Firms directly negotiate output, fixed pricing, and divide markets.
  4. Cartel?
    An entity that engages in output- and pricing-fixing, involving multiple competitors.
  5. Antitrust laws?
    Laws that attempt to curtail anti-competitive business practices.
  6. Prisoner's Dilemma?
    In game thoery, a type of game in which the outcome depends on two parties deciding whether to cooperate or to detent.
  7. Game Theory?
    A theory that studies the interaction between two parties that compete and/or cooperaqte with eachother.
  8. Concentration Ratio?
    The percentage of total industry sales accounted for by the top four, eight, or twenty films.
  9. Price Leader?
    A firm that has a dominant market share and sets "acceptable" prices and margins in the industry.
  10. Capacity To Punish?
    Suffiecient resources possessed by a price leader to deter and combat defection.
  11. Market Commonality?
    The overlap between two rivals' markets.
  12. Multimarket Competition?
    Firms engage the same rivals in multiple markets.
  13. Mutual Forebearance?
    Multimarket firms respect their rival's spheres of influence in certain markets , and their rivals reciprocate, leading to tacit collusion.
  14. Cross-Market Retaliation?
    The ability of a firm to expand in a competitor's market if the competitor attacksits original market.
  15. Competition Policy?
    Policy governing the rules of the game in competition in a country.
  16. Antitrust Policy?
    Laws designed to combat monopolies and cartels.
  17. Collusive Price Setting?
    Price setting by monopolists or collusion parties at a higher than competitive level.
  18. Predatory Pricing?
    An attempt to monopolize a market by setting prices below cost and intending to raise prices to cover losses in the long run after elimintaing rivals.
  19. Dumping?
    An exporter selling below cost abroad and planning to raise prices after eliminitaing local rivals.
  20. Resource SImilarity?
    The externt to which a given competitor posseses strategic endowments comparable, in terms of both type and amount, to those of the focal firm.
  21. Attack?
    An initial set of actions to gain competitive advantage.
  22. Counterattack?
    A set of actions in response to an attack.
  23. Thrust?
    The classic frontal attack with brute force.
  24. Feint?
    A firm's attack on a focal arena important to a competitor but not the attacker's true target area.
  25. Gambit?
    To withdraw from a low-value maret to attract rivals to divert resources into it and then to capture a high-value market.
  26. Defender Strategy?
    The strategy centers on leveraging local assets in areas where MNE's are weak.
  27. Extender Strategy?
    This strategy centers around leveraging homegrown competencies abroad.
  28. Dodger Strategy?
    This strategy centers on cooperating throughjoint ventures with MNEs and sell-offs to MNE's.
  29. Contender Strategy?
    This strategy centers on a firm engaging in rapid learning and expanding overseas.
Card Set
Ibus Chap11