Section 12 Module 66 and 67 Vocab

antitrust policy

involves efforts by the government to prevent oligopolistic industries from becoming or behaving like monopolies

strategic behavior

when the firm attempts to influence the future behavior of other firms

tit for tat

playing cooperatively at first, then doing whatever the other play did in the pervious period

tacit collusion

when firms limit production and raise prices in a way that raises each other's profits, even though they have not made any formal agreement

price war

occurs when tacit collusion breaks down and aggresive price competition causes prices to collapse.

product diffrentiation

an attempt by a firm to convince buyers that its product is different from the products of other firms in the industry.

price leadership

one firm sets its price first, and other firms then follow.

nonprice competition

firms that have a tacit understanding not to compete on price using advertising and other means to try to increase their sales.

brand name

a named owned by a particular firm that distinguishes its product from those of other firms.