Exam 10: The Dynamics of Pricing Rivalry

Why might a firm not be able to react quickly to competitors' pricing moves?

In which of the following industries are competitive pricing interactions not affected by lumpy orders?

How much revenue a firm brings in by improving the quality of a product such that more consumers want to buy it depends on which two factors?

In which of the following industries do more "public" sales transactions enhance the likelihood of sustained cooperative pricing?

What term refers to situations in which firms can sustain prices in excess of those that would arise in a non-cooperative single-shot price or quantity-setting game?

Which set of advice below should a manager disregard when seeking pricing stability that is least likely to suffer from antitrust legislation?

Why do price-sensitive buyers tend to harm cooperative pricing in a market?

Which of the following terms describes the situation created by a large dominant firm where smaller firms can find buyers as long as they sustain a lower price?

Suppose that a firm offers secret discounts to 200 customers in a particular industry to attract those customers from a competitor firm.If there is a 2% probability that any one of those customers will disclose the pricing,what is the probability that the firms competitors will hear from one of those 200 customers? Suppose there are instead 20 buyers to which discounts are offered.What is the probability then that the competitors may find out about one of the discounts?

Which of the following is an example of a market where barometric price leadership occurs?

Which special case term describes the situation where for sufficiently low discount rates,any price between the monopoly price and marginal cost can be sustained as an equilibrium in the infinitely repeated prisoner's dilemma game?

In a six-firm market,if all firms charge the monopoly price,the profit equals $120,000.In that same six-firm market,if all firms instead charge the prevailing price,the profit is $60,000.If the pricing period is one-month long,what is the maximum monthly discount rate implied for each firm to still have an incentive to independently price at the monopoly level?

What type of cooperation-inducing strategy is defined as one so compelling that that a firm would expect all other firms to adopt it?

What type of clause is a provision in a sales contract that promises a buyer that it will pay the lowest price the seller charges?

According to Dixit and Nalebuff,when misreads are possible,what kind of strategies in general are more desirable to use?

Which of the following market condition does not contribute to the low profitability of the heavy-duty truck engine industry?

Which of the following practices can help firms facilitate cooperative pricing?

Which of the following would not help facilitate coordination of pricing across firms in an industry?

Which of the following statements is true about how the volatility of demand conditions affects the sustainability of cooperative pricing?

What term refers to the situation in the used car market where owners are more anxious to sell low-quality cars than high-quality cars?