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19 download_doc-12.php - G202(2/25/2009)...

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G202 (2/25/2009) Topic 5: Market Power and Anti-Trust REQUIRED READINGS:      “The DeBeers Case” and “Parable of the Parking  Lots” Online DeBeers Case Discussion: Mar. 1 st —Mar. 3 rd    In-class DeBeers Case Debriefing: Mar. 4 th     Firms with Market Power Market power      exists when firms are able to restrict competition to sustain  prices above marginal cost.  Monopoly has 100% market power. Market power can exist with multiple rival firms if products are  differentiated and/or markets are segmented (i.e. firms have loyal  customers). To gain market power, the manager’s job is to attempt to sustain any  factors which limit competition.  Strategies to Restrict Competition Strategies in the Market: Guarding trade secretes. Control of an essential resource.
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This note was uploaded on 04/18/2011 for the course BUS 202 taught by Professor Kreft during the Winter '09 term at Indiana.

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19 download_doc-12.php - G202(2/25/2009)...

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