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Duopolija - a situation in which two firms operate almost all market for a product or service. Duopolii can be surprisingly competitive. If you remember, that the product or service price is defined exclusively by the highest proigryshnoj by the offer, and the lowest loss ask the price you will understand why duopolija can be so competitive. The considerable quantity of inefficient competitors will not have almost any affect on the prices finally, if someone (either the government or group idiotichnyh investors) does not wish to finance continuously unprofitable operations in the unprofitable industry (think airlines).
Certainly, always there is a fear before the price establishing the scheme in duopolii. In general, however, that fear is unreasonable. Human nature assumes, that the price establishing the scheme, much more possibly, will occur in oligopolii than duopolija. People load fear before loss much more hard than greed of benefit, doing calculations about the future. In duopolii mistrust increases fear before loss, congenital to any price establishing the scheme (namely, other guy will betray you). In oligopolii distribution of the power and shortage of superfluous ability to any firm do the price establishing very attractive. Price installation in oligopolii - much more safe rate than price installation in duopolii.
There are, of course, other reasons why duopolija very much hardly will lead to the price establishing the scheme. In addition to the healthy does fear, is often painfully, does hatred in duopolijah. In duopolii there is always only one whipping boy. Hatred - personal emotion; if it is extended from above too many objects tends to decrease far. At last, there is a simple fact, that both competitors in duopolii are possibly really big, really quick, really ruthless players. The process leading duopolii, tends to be some kind of wolfing which operate in which two puppies are separated from dwarfs.
Having told everything, that, price installation is possible in duopolii. Some duopolii not the result of competition, but nationalisation and privatisation though it is rather rare as the nationalised monopoly will lead not often long duopolii (it or remains the monopoly once privatised or to be distressed by new, private competitors).
At last, the price establishing the scheme always, has more sense in commodity business. Eventually, any differentiation of a product limits degree to which the general requirement is applicable to products of certain competitors. For example, Coca-Cola and Pepsi - highly differentiated products, at least when it is bought in their certain packing (physical distinctions, or the general lines are insignificant here; it - only belief of the buyer which matters). I drink Pepsi, and I can assure you (however irrational, that it sounds), that no fall in the Coca-Cola price would exist enough to force me to stop to buy Pepsi. There is no other material advantage about which I could tell the same. So, clearly Coca-Cola and Pepsi - the differentiated products, also are very small chance of the effective price establishing the scheme between them.
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