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The consequence of the fewness of firms within a clearly defined industry, where output is fairly homogeneous and entry barriers are substantial, is that firms in an oligopoly realize that they are mutually interdependent. Thus, an oligopolist is unable to decide its best strategy unless it knows what its rivals intend to do and, likewise Throwback Philadelphia Eagles Jerseys , the firm’s rivals are unable to determine their best strategy until they know what the firm is planning to do. Thus ‘optimal’ or best behavior depends on assumptions of rivals’ likely reactions and even assumptions about rivals’ assumptions. Profit maximization and survival in an oligopoly essentially depend on how a firm reacts to the strategies of its rivals. The most often quoted reason for collusion is that, by decreasing the amount of competition, firms can determine monopoly solutions and thus increase their profits.

• Risk
Risk is the major influence in the setting up of co-operative structures. The risk facing firms is the variability of demand and competition from within the industry. A possible escape from these risks would be for the firm to develop market power independently on the basis of product differentiation, product innovation or vertical integration. But such a strategy would be costly and highly uncertain. Collusion is thus an obvious alternative solution to these risks.

• Position and security
Both position and security matter to oligopolists, and any move towards a guarantee of status and security, via collusive action Authentic Philadelphia Eagles Jerseys , is attractive. Perfect competition and monopoly, as theoretical ideals, are not concerned with market position. A perfectly competitive firm regards itself as sufficiently insignificant to be concerned with status. In theory a monopolist, as a sole supplier, does not consider its position as a goal or objective. It cannot better its position. On the other hand, an oligopolist is aware of market share Philadelphia Eagles Jerseys For Sale , for it defines its status in the industry. It may well wish to improve market share or at least ensure that it is not eroded. In either event, the firm cannot ignore its position and it forms a central issue in strategic decision making.

• Access to market information
The desire for information may itself be the powerful drive towards an agreement. All firms require information on which to base their decisions. The importance of such information depends on the degree of interdependence in an industry or the extent to which firms are ‘vulnerable to damage’ by the actions of other firms. Firms are most vulnerable when undertaking investment decisions. A firm does not wish to suffer the consequences of over- or under investment. The effect of such information exchange is to reduce firms’ vulnerability and to increase group cohesiveness. A holiday in Curacao, means that you are going to have so much excitement and fun. You can go shopping, scuba diving, snorkeling, horseback riding Cheap Philadelphia Eagles Jerseys , visit museums, lie on the beach, go deep-sea fishing, and do some windsurfing or sailing. There is something for everyone to do in Curacao. If you like to go sightseeing, you will enjoy the sea aquarium. There is an underwater observatory, which allows you to see all the marine life without getting wet. The Ha. Cheap Jerseys Wholesale Cheap Throwback Jerseys Cheap NFL Jerseys Cheap NFL Jerseys From China Cheap Authentic NFL Jerseys Cheap NFL Jerseys Wholesale Cheap Nike NFL Jerseys Cheap NFL Football Jerseys Cheap NFL Nike Jerseys Cheap NFL Nike Jerseys