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Price Fixing Answers
Price Fixing Answers
Price Fixing Answers
1. With reference to the case identify the oligopolistic features of the toy
market and suggest how the toy market might differ if this had been a
(perfectly) competitive environment.
1
internet shopping); increased revenue via direct Hasbro toy purchases
and through additional purchases by virtue of being in Argos→
Littlewoods face a similar gain source but of smaller volume given
lower branch coverage; both parties benefit from a reduction in
advertising expenditure and the need to expend on additional flyers
following evidence of rivals’ lower prices on offer via catalogue →
Hasbro as the manufacturer is able to maintain its profitability through
maintaining margins at close to the RRPs → This is not an exhaustive
list students should be encouraged to introduce technical terms that
identify the role of such concepts as inelasticity, uncertainty, game
theory.