Posted: April 12th, 2016

What are reactions?

Reactions of each other are important when implementing a policy.
Examples include when increasing prices, being sure that others will follow suit to not lose business to others and vice versa. There are also forms of non-price competition; this includes loyalty schemes, product differentiation etc.
The breakup of communism and the resulting privatization of the Russian oil industry was an example of oligopoly, which created a handful of oligarchs.
The role an oligopoly plays is very similar to that of a monopoly, where protectionism is needed or there are significant industry related risks, trade secrets, technological prowess needed etc (Depken, 2005).