Timeline for How would a firm increase price in such a scenario?
Current License: CC BY-SA 4.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Nov 30, 2020 at 11:56 | vote | accept | Meera Unni | ||
| Nov 28, 2020 at 23:03 | history | edited | 1muflon1♦ | CC BY-SA 4.0 |
edited body
|
| Nov 28, 2020 at 21:15 | history | edited | 1muflon1♦ | CC BY-SA 4.0 |
deleted 1 character in body
|
| Nov 28, 2020 at 20:27 | comment | added | 1muflon1♦ | @MeeraUnni again depending on the parameters it is possible but actually less likely because if you compete on quantity it is more difficult to take whole market from competitor. Otherwise, the mechanism is very similar like the one above just math is different (and bit more complicated). I think there is actually exactly this example somewhere in the book I recommend. | |
| Nov 28, 2020 at 20:23 | comment | added | Meera Unni | Thank you so much 1muflon1!. I would also like to know if such an increase in price is possible if the firm A instead set quantities ?. If you can provide an intuition that would be great. | |
| Nov 28, 2020 at 19:19 | history | answered | 1muflon1♦ | CC BY-SA 4.0 |