OLIGOPOLY INTRODUCTION Oligopolists maximize their total profits by forming a cartel and acting like a monopolist. Yet‚ if oligopolists make decisions about production levels individually‚ the result is a greater quantity and a lower price than under the monopoly outcome. The larger the number of firms in the oligopoly‚ the closer the quantity and price will be to the levels that would prevail under competition. The prisoners’ dilemma shows that self-interest can prevent people from maintaining
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BE – Group Assignment Group No – 15 Centre – Thane OPEC Case Study Course - IIFT EPGDIB ( Vsat) 2009 Participants :1) Dinesh Jhamnani 3) Neelesh Naik 5) Koshy John 2) Anup Nair 4) Prashant Lohade 6) Smita Meshram What is OPEC? The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization of 12 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries. It was founded at a meeting held on 10–14 September
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The Economic Structure of OPEC For: Professor John Zink BUS 610-0703B Economics for the Global Manager By: Maria A. Journiette August 31‚ 2007 Many companies operate under a monopoly which gives them an edge or a corner on the market. In this discussion we will focus on the differences between a monopoly‚ oligopoly‚ and a cartel. We will also look at what game theory is and its affect on monopolies and cartels and the welfare affect of each of the above mentioned. A monopoly is defined
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TV dilemma How to become an oligopoly firm in soft drink market? (source: "A new-age drink war starts as Soda Flops‚" Time‚ December 18‚ 2000 There are many soft drinks in the market‚ yet the main suppliers of popular soft drinks are only two: Coke and Pepsi. The soft drink market in America is a very big business with annual sales of $58 billion. Coke‚ with its patented Coca Cola drink‚ enjoys the dominant role in the soft drink market‚ and runner-up Pepsi is always challenging Coke for the
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themselves‚ which creates an oligopoly. Oligopoly’s are known for having kinked demand curves meaning that when left to the free market competitors will keep undercutting each other until neither are making the large revenue’s they projected when they entered. It is at this point that OPEC‚ the organization for petroleum exporting countries steps in. Using strategy following game theory they control supply so that they can maintain prices at a level where member countries of OPEC can increase their individual
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OPEC Presented By Ashok‚ Vinod and Prashant AGENDA Introduction to OPEC OPEC Important Events Present and Future Feedback Introduction What is OPEC? The Organization of the Petroleum Exporting Countries (OPEC) is a permanent‚ intergovernmental Organization‚ created at the Baghdad Conference on September 10–14‚ 1960‚ by Iran‚ Iraq‚ Kuwait‚ Saudi Arabia and Venezuela. Members Qatar (1961) Indonesia (1962) – suspended from January 2009 Libya (1962) United Arab Emirates (1967)
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Overview of OPEC Is a permanent‚ intergovernmental Organization‚ created at the Baghdad Conference on September‚ 1960. Founder Members: Later joined Members •Iran •Iraq •Kuwait •Saudi Arabia •Venezuela •Qatar (1961) •Indonesia (1962) – suspended membership 01/2009 •Libya (1962) •United Arab Emirates (1967) •Algeria (1969) •Nigeria (1971) •Ecuador (1973) – suspended membership 1992-2007 •Angola (2007) •Gabon (1975–1994) Objectives of Opec • OPEC’s objective is to co-ordinate and unify petroleum
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Oligopoly Characteristics Oligopoly is the main form of modern market structure. The term "oligopoly" is used to define a market in which there are few companies‚ some of which control a large share of the market. In the oligopoly industry some major companies compete among themselves and the introduction of new firms on this market is complicated‚ because of the presence of barriers to entry. Products manufactured by firms can be both homogeneous and/or differentiated. Homogeneous products have
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ANALYSIS OF MARKET STRUCTURE DATE: 8TH NOVEMBER 2014 SR. NO TOPIC PAGE NO. 1 OLIGOPOLY 3 2 PERFECT COMPETITION 5 3 MONOPOLY 7 4 MONOPOLISTIC 9 5 COMPARISON 11 Oligopoly An Oligopoly is an industry dominated by a few firms‚ e.g. supermarkets‚ petrol‚ car industry etc. The main features of oligopoly: An industry which is dominated by a few firms. Interdependence of firms‚ firms will be affected by how other firms set price and output
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Petroleum Exporting Countries (OPEC)‚ inter-governmental organization‚ was established at the Baghdad Conference in Iraq in September 1960 by Iran‚ Iraq‚ Kuwait‚ Saudi Arabia‚ and Venezuela. These five countries were later joined by eight other countries; Qatar (1961)‚ Indonesia (1962)‚ Libya (1962)‚ United Arab Emirates (1967)‚ Algeria (1969)‚ Nigeria (1971)‚ Ecuador (1973)‚ and Gabon (1975). Ecuador and Gabon withdrew from OPEC in 1992 and 1994. The current eleven OPEC members account for about 40
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