Information Oligopolistic Markets: Supply Differentiation and its Impact on the Efficiency of Commercial Activity
Irina Samoylova
Abstract
Irina Samoylova
Abstract
Competition in oligopolistic markets can be defined as the process of mutual influence of companies, considering different amounts of awareness and principles of response to each other’s actions. The volume of promotional (commercial) activity can be considered a strategic variable when modeling competition processes. A high degree of penetration brings oligopolistic competition to the level of competition in terms of customer acquisition costs. Maintaining a differentiated offer affects the effectiveness of customer acquisition and, as a result, smoothes the positions of competing companies with initially different parameters of response to each other’s actions.
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Competition in oligopolistic markets can be defined as the process of mutual influence of companies, considering different amounts of awareness and principles of response to each other’s actions. The volume of promotional (commercial) activity can be considered a strategic variable when modeling competition processes. A high degree of penetration brings oligopolistic competition to the level of competition in terms of customer acquisition costs. Maintaining a differentiated offer affects the effectiveness of customer acquisition and, as a result, smoothes the positions of competing companies with initially different parameters of response to each other’s actions.
Key concepts: Oligopoly, Industrial organization, Business, Microeconomics, Commerce, Economics, Cournot competition