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Image sizes: 256x256, 48x48, 32x32, 24x24, 20x20, 16x16 File formats: BMP, GIF, PNG, ICO ![]() ![]() ![]() ![]() Tags: ar rehman images, image souris, love you icons, imagesetter sale, sanaa lathan imageAlso at Richard Pozner in Industrial Concentration, p. 414.] Actually Behaviour of leading firms unequally in various branches; but researchesDependences between profits, a share of the market and concentration of manufacture in the different Branches have shown that, as a rule, the prices are appointed according to level Costs at competitors and a deviation from such approach are rare enough. Some considered that for an explanation of higher profits in branches with High concentration of manufacture of Stigleru it was unessential to assume Presence of obvious arrangement. Making a start from the theory about coherence of strategy Pricings (interdependent pricing theory), they asserted that in Branches where firms cannot raise a sales volume at the expense of reduction of the prices (As other sellers will immediately reduce the prices in the answer), the prices will be in Whole a little above competitive level - can be, it, but in any Case small distinctions are subject to an explanation. One of theory consequences about coherence of strategy of pricing is The statement that in the markets with high concentration of manufacture of firm React to reduction of demand by release decrease, instead of the prices, as Expect that after them competitors also will reduce the prices, and as a result The sales volume will not increase. Precisely also they will respond to growth of demand increase Not the prices, but manufacture as it are threatened with serious losses, if after Such increase in the prices competitors immediately will not increase the prices. The corresponding facts have been carefully investigated by Filipom Kaganom, job Which it was financed by National bureau of economic researches. It Has come to a conclusion that in branches with high and with low concentration Manufactures reaction to demand changes is identical, as both there and there The first reaction of firms to such changes consists in change of volumes of stocks And manufactures, and only then they resort to change of the prices Mergers, Economic Concentration, pp. 474 - 475, pt. 1, 1st sess., Senate Committee on the Judiciary, Subcommittee on Antitrust, Monopoly, 96th Cong., 25 April 1979 and Business Rights. "Prepared Statement of Philip Cagan", ![]()
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