1 Oligopoly Most dominant form of market structure Most dominant form of market structure Few Buyers Few Buyers Mutual Interdependence Mutual Interdependence Reactions of Rivals Reactions of Rivals Lets meet in New York City Lets meet in New York City Focal point Focal point Game theory Game theory

2 Oligopoly Dominant firm model Dominant firm model US Steel US Steel Price leader Price leader Shared Monopoly – Cartel Model Shared Monopoly – Cartel Model Electrical equipment industry Electrical equipment industry Phases of the moon Phases of the moon Breakfast Cereals Breakfast Cereals Kellogg Plan Kellogg Plan Brand Proliferation Brand Proliferation Advertising Advertising Shelf space as monitor Shelf space as monitor

3 Oligopoly Oil Industry Oil Industry Joint Ownership Joint Ownership Mergers Mergers Computer Software Computer Software Operating Systems Operating Systems Programs Programs Internet Internet

4 Brands of Cereal YearNew Brands Total Brands KelloggGMGF (post)Quaker

5 Return of Equity Kellogg 18.9 Gen. Mills29.5 Gen. Foods15.1 Quaker 9.0 Ralston20.5