University of Cambridge Week 12 Firm Pricing Strategies

Choose a well-known industry whose key players could reasonably be considered an oligopolistic firm. Choose one of the 5 following industries:

  • Big-Box Membership Discount stores (Costco, Sam’s Club, or BJ’s Wholesale)
  • Wireless Carriers (Verizon, AT&T, Spring-Nextel, or T-Mobile)
  • Soft Drink Giants (Coca-Cola or Pepsi)
  • Music Labels (Sony BMG, Universal Music Group, Warner Music Group)
  • Domestic Airlines (American Airlines, Delta Air Lines, Southwest Airlines, United Airlines)

Prior to beginning this discussion question, take a moment to search online news sources to find current events that are impacting the industry that you have chosen. This could be as broad as a global economic shock or as specific as an industry-specific controversy. Find articles that keenly interest you and will be an engaging topic to discuss with your peers. Insert links to those news sources in your response, and then answer the following questions:

  1. Identify the two articles that you chose. Briefly (small paragraph) identify the impact of each news event on this industry.
  2. What aspects of the oligopolistic market structure influence the outcome of the news event(s) mentioned in the article(s)?
  3. How might your answer to #2 have differed if this market structure was less concentrated; in other words, how might your answer to #2 have differed if this market structure were a monopolistic competition as opposed to an oligopoly?
  4. When firms in this industry are determining what price to charge for its goods or services, what are some of the factors that they must take into consideration?
  5. How would each news event likely impact the market price of the goods or services being sold in this industry? Why?
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