Economics Oligopoly Questions
Strategic behavior in oligopoly refers to the actions and decisions made by firms operating in an oligopolistic market structure in order to maximize their own profits and gain a competitive advantage over their rivals. This behavior involves considering the potential reactions and responses of other firms in the market when making pricing, production, advertising, and other strategic decisions. Oligopolistic firms often engage in strategic behavior such as price leadership, collusion, price wars, product differentiation, and aggressive marketing tactics to maintain or increase their market share and profitability.