To make student understand how the oligopoly market works, JIM Indore hosted a guest lecture recently.
Jaipuria Institute of Management, Indore has always been inclined towards providing field knowledge to its students. To make the student understand how the oligopoly market works, a guest session was organised where Dr. Nishant Joshi was welcomed to share his experience related to oligopoly market.
He is an author of 12 internationally acclaimed pieces of research, an academician and Industry professional all at the same time.
The session began with Mr. Joshi detailing about Price leadership Model. He further explained that Oligopoly is a market structure in which a small number of firms have the large majority of market share. He also covered kinked demand that this demand makes the market more elastic since as the firm raises its price, thus many of its customers will buy from other firms, lowering the revenue of the higher priced firm on the other hand if the firm lower its prices then the other firms would surely follow to prevent any loss of market share. This part of a demand curve is much more inelastic since all the firms are acting in concert. Both the above will create kink demands.
When the change in demand goes from very elastic at higher prices to inelastic at lower prices. Since the marginal revenue depends on prices the marginal revenue is also linked. At a lower price, the MR drops downwards creating a gap. Followed by that Dr. Joshi addressed about Cartel/ collusion Market that sometimes firm in an oligopoly try to form a cartel by agreeing to fix prices as to divide the market among themselves or to restrict competition some other way.
No doubt the session was very much informative and engaged the students to learn and acquaint immense knowledge about markets in the economy. The session ended with Dr. Megha Jain exchanged the vote of thanks along with a token of appreciation to Dr. Nishant Joshi for sharing with the young minds his valuable time and knowledge.
Source: Insiya Ali, HTCampus Specialist
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