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Colt 45, Bambini, and The University of South Australia (Navitas), Selecta Ice Cream. The research will also be conducted within the period of critical six months including the analysis. Furthermore, the pop . Article The University Australia? cultural aspect will concentrate on gender portrayals through clothing and other factors. The sample population, on the other hand, will be from how to review Ashbury, a randomly selected public elementary school in summary Baguio City. This is to ensure that these children have been exposed to thinking bias Business, the mass culture presented by article summary The University, the media. In case none of the schools approved our request. Advertising , Culture , High culture 4860 Words | 15 Pages. University of the Philippines Population Institute said that there’s a significant percentage of early to late adolescents who are already into premarital . sex. This result reflects our society today.
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Along with different primary data, the summary The University (Navitas) researcher also made use of secondary resources. Cousin , Gather , Quantitative marketing research 735 Words | 3 Pages. Thinking Courses The University? A Sample Thesis With a Subtitle by Michael Mc Neil Forbes B.Sc., The University of British Columbia, 1999 M.Sc., The University . of British Columbia, 2001 SUBMITTED TO THE DEPARTMENT OF PHYSICS AND ASTRONOMY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY c Michael Mc Neil Forbes, 2000. All rights reserved. The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this.
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GreenBook, The Guide for Buyers of Marketing Research. Posted March 9, 2010 by Michael Stanat, Research Executive, SIS International Research , SIS International Research. Companies embrace commitments to being leaders in climate change. This case study looks at one company's implementation of green strategies, its challenges and results. Siemens is one of the world’s most prominent companies and Europe’s largest technology conglomerate. With 430,000 employees, $77 billion in revenue and industrial manufacturing, the company naturally has a major impact on The University (Navitas), greenhouse gases emissions emitting 4.53 million tons CO2e.
Siemens has acknowledged the importance of climate change as one of the most important challenges facing humanity, alongside world poverty and access of all people to proper sanitation and energy. This perspective has helped the company’s manufactured products eliminate 15 times the company’s total emissions. Investing €2 billion annually in research and development, Siemens has a hefty 30,000 environmental technology patents and offers efficient solutions that better combat climate change. The company’s goal is to essay London Academy become a leader in climate change reduction by improving the performance of customers through efficient products. In fact, it has proclaimed to article The University Australia media that it has the most environmentally-friendly industrial technologies portfolio. How To Essays Lancing. Further, Siemens has publicly embraced the need to address climate change and energy efficiency into its operations, communications, cross functional boards, product development and its membership at non-governmental organizations. Beyond this, Siemens has set tangible targets for the future: its leadership expects by 2011 a 20% increase in energy efficiency and a 20% reduction of global carbon dioxide emissions.
Given the The University, company’s size, global research and industrial technology solutions, the company has a strong platform to impact climate change. This inquiry seeks to answer a central question: How has Siemens implemented plans to manufacture green products and make its operations green? Indeed Siemens has a vertical organization comprised of many strategic business units with vastly different operations. Essay London. This question delves into how a very diverse conglomerate like Siemens has integrated climate change among its units. Exploring this question further can help to provide recommendations and understand existing challenges. Analysis on Siemens’ embracing climate change. Siemens’ overall stance and article The University of South, message on climate change is that climate change fits into a larger discourse on critical thinking courses The University of Birmingham, serious challenges facing humanity and the socially responsible corporation. Essentially, Siemens views its role as providing the technologies to of South Australia better resolve those issues while creating shareholder value.
Its management acknowledges the critical thinking bias Rotterdam Business, seriousness of climate change to human life, without neglecting the complexity of issues. Another consideration is article The University of South Australia (Navitas), advancing a sustainability campaign mirroring that of its competitors, which have largely incorporated climate change into their sustainability goals. For example, Phillips (EcoVision) was one of the first competitors to launch major global PR efforts to critical thinking demonstrate its green credentials to publics and customers. General Electric (GE) launched its salient “Ecomagination” campaign in 2005. ABB had a slogan “Power and productivity for The University a better world”. Addressing these issues after many of its competitors, Siemens joined these efforts with its own campaign and advanced a definition of environmental best practices in industrial engineering along with the Boston Consulting Group.
They arrived at the definition ““Environmentally intelligent products and solutions” that apply to writing “significantly superior environmental standards in comparison to the installed-base average”. This definition favored Siemens’ products, by showing Siemens as having the largest volume of green products. With Siemens’ definition, Siemens claims €19 billion versus GE’s €13 billion and Phillips’ €6 billion. In addition, Siemens can claim that the share of green products among its manufacturing composes 25% compared to GE’s meager 14% and Phillip’s 23%. Exploring Siemens’ Green Initiatives. Siemens, as a global conglomerate, has hundreds of global projects part of a large “eco portfolio”. This paper will only illuminate several most recent international projects, with the purpose of showing how different business units are combating climate change in diverse ways. The University (Navitas). Indeed, Siemens is a global German company in industrial manufacturing requiring complex cross-border transactions with global clients. Thus, analyzing its operations in the United States is within the international scope of this analysis. Generally, the company focuses on renewable power generation, efficient traditional power generation, efficient energy transmission systems, efficient heating and lighting, efficient transportation, and energy / greenhouse gas monitoring systems.
Siemens Power Generation (SPG) is focused three key solutions. First, it embraces Carbon Capture and Business, Storage (CCS) in coal power generation longterm. The approach is based on increased efficiency in Integrated Gasification Combined Cycle Plants (IGCC) pre-combustion carbon capture. Siemens’ management expects that this will be ready for wide scale commercial use by article summary The University of South (Navitas) 2014. Secondly, Siemens is writing discursive essays Norwich of The Arts, focused on Post-Combustion Carbon Capture by optimizing current solvents and processes, and summary The University Australia, incorporating the writing comparison essays College, unit into the energy facility. For Siemens, the overall post-combustion capture system involves another stage to remove CO2 and is particularly used in retrofitted older power plants.
Also, Siemens is a member of the CASTOR project under the European Commission, which is committed to lowering the cost of Post-Combustion Carbon Capture to 20-30 € /t CO2. Thirdly, the article The University Australia, company is focused on CO2 Compressors efficiency, particularly “gear type” compressors. Analytically, Siemens’ approach accepts that coal has enormous cost advantages that economically outweigh dramatic changes, but still seeks to responsibly capture and store carbon to fight climate change. Moreover, Siemens has developed and commercialized technology to provide efficient energy transmission. One of Siemens’ advanced transmission initiatives is High Voltage DC (HVDC) transmission links targeting the grid efficiency. Critical Thinking The University Of Birmingham. For example, Siemens Energy won a 2008 contract to build a 3000-megawatt HVDC system between China’s Guizhou province to Guangdong. The project, in conjunction with Chinese partners, consisted of developing a system that could transport energy by 800 kV transmission voltage. The benefits were reductions in Greenhouse Gases by article of South Australia more easily connecting remote power plants. This boosted the amount of energy into the grid and simultaneously made energy transmission more efficient. Another similar Siemens HVDC project in China connected a hydroelectric dam from Yunan province to Guangzhou and Shenzhen.
In China, the alternative would be coal power. Likewise, the The University, benefits of efficiently connecting a renewable energy source to more remote areas without building polluting coal power plants were significant. Furthermore, wind renewable energy is article The University (Navitas), a major part of Siemens’ eco-portfolio. Thinking Bias Rotterdam. Siemens Energy builds wind turbines, claiming to have globally 1,800 megawatts of offshore wind capacity installed or on order as of article (Navitas), late 2008. One major project off of Denmark’s seacoast was its 2008 Rodsand II wind farm contract with E.ON to manufacture 90 wind turbines.
To be completed in 2010, the turbines will provide 207 megawatts. Another major project in Sweden is Siemens contract to build Wind turbines for a vast wind farm by the Vattenfall company. The project will generate 170 megawatts. Beyond turbine manufacturing, Siemens also ensures turbine efficiency through vast research and critical of Birmingham, modeling worldwide. To these ends, Siemens operates wind turbine RD centers in Denmark, Germany, the Netherlands and article summary The University of South Australia, United Kingdom. In Colorado recently, Siemens opened a US wind turbine research center in critical bias School, collaboration with the National Wind Technology Center (NWTC). The facility, focused on researching and of South, developing better turbines, will distribute wind technology research to Siemens’ other centers worldwide. Additionally, Siemens Energy is how to write for an essay London, working with Lawrence Livermore National Laboratory to provide laboratory atmospheric modeling. This can help boost wind farm efficiency, which is plagued in some cases by summary (Navitas) 20% differentials from actual performance and initial forecasts. Analytically, this commitment is consistent with Siemens’ approach to providing effective products while furthering technology that fights climate change. Siemens has commercialized landfill renewable energy to convert methane greenhouse gas from rotting trash into energy for industrial purposes.
Siemens views this renewable energy as both profitable and environmentally valuable. For example, the writing discursive Norwich, Three Rivers landfill in South Carolina partnered with Siemens building technologies to treat the gas for summary The University usage as fuel. Siemens then worked with Kimberly Clark, which treats the gas and thinking courses The University, consumes it for its own purposes. This process reduces fossil fuels by harnessing existing waste. As the process took place over The University of South a distance of several dozen miles, it also boosted transmission efficiency with Siemens advanced energy transmission technology.
At the same time, it provided economic benefits to the purchaser Kimberly Clarke, who can purchase the energy from Siemens at a much lower cost than from traditional electricity. The reduction from this Siemens project has removed the greenhouse gas impact of 41,000 cars from the road, according to the EPA. Energy-saving retrofitted improvements by Siemens Building Technologies are another major part of Siemens eco-portfolio. An example of this was the Greensboro Coliseum in North Carolina, one of the largest coliseums on the US East Coast. Siemens was contracted to critical bias Rotterdam retrofit energy-saving lighting systems, water saving systems and large modifications to article summary of South (Navitas) the heating ventilation and air conditioning (HVAC) system. How To Write A Introduction London. The renovation cut energy consumption by 25%. Water and summary of South Australia, natural gas usage fell 50%. Critical Thinking The University Of Birmingham. The coliseum saw lower maintenance costs, energy savings and increased comfort to tenants. This Siemens project will have the effect of eliminating 530 cars’ carbon footprint. Efficient transportation is another facet of the summary Australia (Navitas), eco-portfolio. Siemens’ hybrid drive systems, sold to critical bus manufacturers globally, are comprised of an summary The University (Navitas) ELFA system which optimizes energy usage.
The effect on these buses was comfortable performance using 40% less energy usage and carbon dioxide emissions. As they often run in how to an article review Ashbury, urban areas, the buses can also boost urban air quality and reduce the impact of smog. As a result of the systems, the Clinton Climate Initiative inducted Siemens Energy and Automation Inc because of the wide scale implementation of over 1,000 hybrid-drive systems in cities worldwide. Another part of Siemens’ plan to combat climate change is Australia, membership in non-governmental organizations (NGOs). Siemens’ recent contribution included working on the World Economic Forum’s working paper. Thinking Rotterdam School. Siemens is also a member of the top companies of the Australia, Carbon Disclosure Project’s Climate Leadership Index. Write. Another key membership is The U.S. Climate Action Partnership (USCAP). Notably, Siemens worked with two-dozen corporations at USCAP in developing a legislative consensus part of a “Blueprint for Legislative Action”.
This membership suggests that Siemens supports climate change legislation to 80% emissions reduction cuts in 2050 back to 2005 levels, and a cap and summary (Navitas), trade emissions scheme. GE, a direct competitor, is also a member showing that competitors view climate change seriously and critical courses The University, conveying their own green credentials to publics. Additionally, Siemens has built a sustainability board of executives to convey messages to publics and article summary of South Australia (Navitas), manage sustainability efforts throughout the organization. It appointed a Chief Sustainability officer Barbara Kux to implement sustainable measures throughout diverse businesses. While the write Lancing College, Sustainability board’s role is to coordinate sustainability efforts, little information is available about the board’s efforts. Siemens has acknowledged the Australia (Navitas), impact of the Global Recession on its businesses performance. Siemens’ stock from April 2008-09 lost approximately half its value but remains stable as of late April 2009 around $65 per share.
Yet the company predicts its “environmental portfolio” will account for nearly €25 billion of global revenues by 2011, based on 10% annual anticipated growth. Analytically this target shows management’s high expectations for Siemens’ green solutions. According to PricewaterhouseCoopers, Siemens products’ impact by 2011 is projected to how to International slash emissions by 275 million tons, equaling the total emissions generated by six of the world’s largest cities. If this happens, Siemens will gain another green credential to reduce some criticism levied against the company. Fang Zhou extensively studied Siemens’ sustainability commitment. In a 2004 study focused on Siemens Australia, Fang found several challenging findings. Fang found that only article The University of South Australia 40% of how to London Academy, business units participated in The University Australia, Siemens’ top improvement program, involving environmental and writing discursive essays Norwich of The Arts, social sustainability. The reason was that employees considered it too general, unclear and wasteful of summary of South Australia (Navitas), their time. Lacking were incentives, awareness, and performance benchmarks outside of College, strict emphases on financial performance.
Put bluntly, Fang proclaimed, “The results indicated a significant gap between what is important for Siemens and how well Siemens is article summary The University of South Australia, performing in critical thinking bias Business School, terms of environmental and social sustainability.” Essentially, Siemens needs to article summary of South Australia better harness and optimize its human resources to achieve its goals. Experts have taken issue of Siemens’ definition of being green, particularly because it was favorable to thinking Siemens in showing publics a stronger commitment to combating climate change. Specialist Gunter Schoech at GL Group raised his concern. Siemens offers combined gas and steam turbine. His point was how could it be considered green when this turbine system will still annually emit 2 million tons of carbon dioxide. His analysis was that it could be considered green only in article The University of South (Navitas), the sense that it offers efficiency gains over the past generations. Siemens would have to an article review College claim explicitly that it is 2% more efficient than the last generation of turbines.
Additionally, Schoech analyzed that Siemens’ sustainability board may face a dismal inefficacy that preceded many of Siemens’ cross-functional company wide boards. The source of their failure has been an inability for cross-functional implementation across units, which certainly vary across Siemens’ diverse specialties. The University (Navitas). He hypothesized that in the past there were not sufficient incentives and motivation to thinking Rotterdam work together among units for sustainable solutions, similar to Fang’s aforementioned findings. Other challenges exist for Siemens, particularly in comparison with its competitors. Siemens message of article The University of South Australia, its stronger commitment to climate change may have less salience than GE’s robust marketing campaign “Ecomagination”. Courses. To this day, Siemens’ initiative does not have a salient slogan or messaging program to article summary of South Australia (Navitas) convey to publics a commitment to climate change unlike GE and ABB. Instead, publics see climate change on the Siemens Youtube channel, a point of writing comparison essays, contact with consumers and businesses, as only summary of South Australia (Navitas) one of many other issues that Siemens is addressing.
Siemens faced humiliating bribery scandals over the past decade, which threaten relations with governments and publics. First, the company participated in thinking, the Oil-for-Food program and was alleged to have paid surcharges to Saddam Hussein’s government. Secondly, Siemens was in the spotlight for €1.3 billion in corruption scandals in the past few years. Thirdly, the company was forced to The University of South Australia (Navitas) pay a fine of writing discursive Norwich of The Arts, $300 million to a court in Germany due to corruption abroad. Siemens also faces a lawsuit in summary of South Australia (Navitas), Chattanooga for critical of Birmingham poor design of article summary The University, a sludge treatment plant. Thinking Bias Business School. Other scandals involve funding AUB, a rival trade union, to summary The University of South Australia disarm its primary rival trade union, IG Metall Union. On April 23 2009, the Defense Department Criminal Investigative Services raided Siemens Medical Solutions’ offices in Pennsylvania following an awarded military imaging contract. Thus, Siemens needs to how to write a introduction for an Academy build trust not only for of South (Navitas) its climate initiatives but also for its ability to win government contracts. Publics are also not fully satisfied with Siemens’ commitment. While Siemens ranks highly in its policy stance, Climate Counts calls Siemens a “Striding” company that still has a lot of of Birmingham, work to do outside of its strong 2007 gains.
In fact, Climate Counts gave Siemens unsatisfactorily half marks in of South (Navitas), transparency (6 out of 12 points), internal usage of energy (23 out of 56 points), and Lancing College, internal carbon auditing (14 out of article summary of South, 22 points). Furthermore, Greenpeace has questioned how forthright Siemens was in disclosing and eliminating harmful chemicals from its operations and manufacturing. For example, Fujitsu-Siemens has not promised to disclose chemical usage and critical thinking Rotterdam, has not committed to eliminate polyvinyl chloride (PVC) and brominated ?ame retardants (BFRs). Recommendations Evaluative Conclusions. Siemens is a paragon of a company that sees environmentally-friendly products as a way to summary The University of South Australia fight global warming while becoming more efficient in its own operations. With fewer inputs to make more outputs, Siemens is critical, providing shareholder value and environmental benefit.
Its strategy has not limited revenues or jeopardized its operational integration; on the contrary, it has grown them to the extent that Siemens’ management is proudly proclaiming that 25% of its eco-portfolio will come from article summary Australia (Navitas), environmentally-friendly products by 2011. With collaboration with governments and thinking courses The University of Birmingham, prominent NGOs, Siemens is quietly building goodwill for stakeholders concerned with climate change. The major issue lies with Siemens optimizing its commitment and implementing a unified effort across diverse business units. The University. Research showed that employees and managers are not fully aware of how to manage sustainability, particularly among different units. As a result, the how to expository essays Lancing, efficacy of Siemens’ efforts may not be at their potential. As suggested earlier, Siemens’ cross functional sustainability board may be ineffective because of the past failures in similar boards at Siemens. There are several recommendations, according to The University of South Australia (Navitas) Fang Zhou who extensively conducted fieldwork research on sustainability among Siemens employees. First, Siemens needs to develop both management’s awareness and skills to be socially responsible. Secondly, it needs to provide robust performance metrics that can be audited for write an article Ashbury proper implementation. Thirdly, incentives need to article The University of South Australia be improved. Fourthly, communications need to better assert Siemens’ visions to stakeholders.
Lastly, sustainability needs to be integrated into strategic planning and global strategy to thinking bias Business better balance performance, operational excellence and sustainability. Beyond these research-based suggestions, Siemens should consider aggressively developing industry’s most efficient products. Efficiency is a major paradigm in industrial products because of article of South (Navitas), (1) climate change, (2) the how to write review, global recession’s emphasis on efficiency and article summary of South, (3) rising energy costs. Essays. Companies with the article of South Australia, most efficient products can develop competitive advantages. How To Write Essays College. Such competitive advantages are crucial because competition among GE, ABB and Siemens is fierce. Additionally, publics are less aware of Siemens’ commitment to climate change, in comparison to GE’s initiatives. Siemens self-defined metrics show the summary The University of South Australia (Navitas), company to be the best in its class with efficient products and having one of the comparison College, largest annual investments in environmentally friendly products. But its communications message are not as salient as GE’s. This leads back to the issue of optimizing and enhancing the sustainability campaign’s implementation. Furthermore, although Siemens is transparent about its activities, that has not prevented publics like Greenpeace from questioning its disposal of dangerous chemicals.
As Siemens Power Generation embraces Carbon Capture and Storage (CCS), the company should consider clearly defending the merits and safety. This is (Navitas), because anti-“clean coal” organizations are making claims in mainstream television and comparison, online media. Simultaneously, Siemens should cultivate relations with governments as it faces very serious corruption allegations. Not doing so can jeopardize its aims in combating climate change. With an optimized effort at implementing further efforts throughout different businesses, Siemens can optimize a currently robust climate change effort and summary The University Australia (Navitas), simultaneously deliver superior value to customers and investors. Siemens Power Generation company witnesses major profits and growth in providing efficient energy transmission due to the ageing US power grid. The overall message to shareholders in this speech was that Siemens advanced technologies are not only contributing to profits, but also upgrading the grid to fight inefficient energy transmission impacting climate change. The chart shows a red spike showing a ballooning need to replace ageing infrastructure, and Siemens can fulfill that need with efficient grid solutions. Highlighted summary of data: According to UBS and Siemens, the major needs for “replacement” of European ageing infrastructure in 2012, 2016, 2018, 2026 and 2030 The value of European replacements range from €5 billion to €26 billion per year.
Siemens Power Generation demonstrated to critical thinking Rotterdam School shareholders how it has maximized the article Australia, division’s profits. Indeed this measure of success shows how incorporating environmentally friendly products in power generation can benefit the bottom line. Revenue growth rose by 15% CAGR in critical The University, 2008 Return on Capital Employed (ROCE) rose by of South a hefty 80% The division’s profit rose by 40% CAGR. Financial Contribution of power generation to Siemens’ bottom line. The table shows how businesses targeting climate change are contributing some of the highest contributions to Siemens’ bottom line. Highlighted summary of Siemens’ Green Businesses’ growth: Renewable Energy 38% adjusted growth in orders from how to write expository Lancing College, 2008 2009 Drive Technologies 16% adjusted growth in orders from The University of South Australia (Navitas), 2008 2009 Building Technologies (e.g. green retrofits) 3% adjusted growth in orders from 2008 2009 Power Transmission 1% adjusted growth in orders from 2008 2009 Power Distribution 6% adjusted growth in orders from writing College, 2008 2009. Barbara Kux appointed to Managing Board to head Supply Chain Management and serve as Chief Sustainability Officer. Siemens AG. 25 Apr.
2009. Clean Coal Air Freshener. YouTube. 25 Apr. 2009. Clinton Climate Initiative Enlists Siemens to Help Reduce Greenhouse Gas Emissions with Hybrid Drive Systems for City Buses. Siemens USA - Press. 25 Apr.
2009. Company Report: Siemens. Global Investment Watch. 21 Mar. 2009. “Corporations, environmental groups agree on major climate initiatives.” RDS Business Suite. 21 March 2009.
Defense Department agents search Siemens offices | Philly | 04/23/2009. Philly News. 25 Apr. 2009. Don't give up on climate change during recession, urges CBI - CBI News. Article Summary Of South Australia. CBI on climate change. Climate change policy and writing discursive Norwich of The Arts, lobbying for UK business. 21 Mar. 2009. LLNL signs agreement with Siemens to improve wind energy efficiency.
EurekAlert! 25 Apr. 2009. Methane gas from Three Rivers landfill will power Kimberly-Clark plant. TheTandD.com. 21 Mar. 2009. Power Engineering - Siemens commissions 3000 MW HVDC transmission system in The University Australia (Navitas), China.
Power Engineering. 25 Apr. Writing Essays College. 2009. Schoech, Gunter. “Why industrial conglomerate Siemens suddenly discovered it's green mission.” March 2, 2009. GLG Group. Article Summary The University. 21 March 2009. “Siemens AG”.
Google Finance. 25 April 2009. An Article Review. . Siemens - Climate Action. Of South Australia (Navitas). Climate Action. Review. 21 Mar. 2009. Siemens, E.ON sign €275M deal for offshore wind | Cleantech Group. Cleantech Group. 23 Apr. Article Summary The University Australia (Navitas). 2009. Siemens Media Room.
Siemens USA. 23 Mar. 2009. Siemens Predicts Big Revenue from write a introduction London International, Green Products on article summary The University of South Australia, Managing Automation. Manufacturing Technology. 25 Apr. 2009. Siemens* Score. Climate Counts. 21 Mar. 2009.
Siemens TV. Siemens Answers. YouTube. 21 Mar. 2009. Voges, Klaus. Climate Change Mitigation Technologies - the Siemens Roadmap to essays Kendall College Carbon Capture and Storage. Rome 2007 World Energy Congress (2007). What does climate change mean for Siemens? 21 Mar.
2009. Wind Energy: Vattenfall and Siemens sign wind energy deal. Article The University (Navitas). Gulf Oil gas: Asia, Middle East Africa Oil Gas e-Marketplace. Writing Comparison Essays. 25 Apr. 2009. Zhao, F. (2003), Siemens’ business excellence model and sustainable development, Measuring Business Excellence, Vol. 8 No.2, pp.55-64. Nufer Marketing Research, Inc.
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World War I/Role Of Technology In World War I term paper 15876. The Role of Technology. Technology made a huge impact in the fighting of World War I. Blimps dropped bombs, airplanes with propellers in the back radioed gun positions, aces battled in their biplanes, ground troops threw and shot grenades at each other, and heavy machine guns snapped off bullets at article summary Australia (Navitas) each other making a big difference in the course of the critical bias Business war. Article The University. These tools of war can be divided into how to write Ashbury College, two major categories: air advances and ground improvements. Airplanes were first used in 1911 in a war in Libya, and also in the Mexican revolution. There wasn’t much air bombardment in these wars; the planes were used for reconnaissance missions.1 By 1914, however, this technology was being used in European countries. The importance placed on airplanes in the military can be measured by article The University, the amount of critical thinking Business, money each country spent on getting the technology, and building things using the knowledge. By this time France had spent about 22 million dollars on The University Australia, this new field of military technology. Germany had also spent 22 million. America, however, had only critical courses The University of Birmingham spent half a million dollars on its program.2. Another measure of the importance placed on summary The University (Navitas), planes by writing comparison essays Kendall College, each country is the number of planes it had and The University (Navitas) when the actual branches of the militaries were formed.
By 1912 France had formed its Royal Flying Corps and had 36 planes in it. Later in 1913 Germany formed its Imperial German Air Service. This air force was based on lighter than air vehicles and dirigibles; they had mostly hot air balloons and blimps. Britain, however, had beaten them all: they had not only formed an air force, but just before the war they divided it from just the essays Lancing College British Royal Flying Corps into article of South Australia, The Royal Naval Air Service and The British Royal Flying Corps.3. By 1915 airplanes were used for many things on critical thinking courses The University of Birmingham, the front. Planes often flew behind enemy lines, landed, let a spy get out, then took off again. The parachute had been invented, but military pilots weren’t using it.4 Troops were also often supplied by plane. Planes also told guns where to article Australia (Navitas) shoot using wing signals, and messages dropped to machine gun operators. Sometimes, but not often, they used radios. 5.
At the beginning of the critical courses war slow, stable planes that provided a good lookout position was what the military wanted. These planes had seats for the pilot, and an observer. Sometimes a machine gun was mounted behind the seats so the article The University (Navitas) observer could turn around and fire at thinking courses The University of Birmingham other aircraft. Article Summary Of South Australia. Faster, smaller one-man fighters were soon developed to destroy the slower planes.6. Soon planes took on essays, more tasks than just reporting army positions.
By 1914 both British and article summary of South (Navitas) German pilots started throwing grenades and gasoline bombs at opposing troops. These first attempts didn’t have significant results. Soon planes started attacking each other. The first recorded aerial battle was on August 26th 1914. 3 British planes forced a German plane to land, then burned the plane.7. German dirigibles, also known as Zeppelins, were a major force in write, the war because they often carried large bombs. Article Summary The University Of South (Navitas). They were hard to write expository Lancing destroy while airborne, and were often destroyed while inside their sheds. The University Australia (Navitas). British incendiary bullets were also able to destroy them. Churchill said, “I believed that this enormous bladder of combustible and explosive gas would prove to be easily destructible. . our incendiary bullets would harry, rout, and burn these gaseous monsters.”8.
At first pusher planes were considered the superior single man plane, with the essays engine and article summary Australia (Navitas) propeller mounted in the back providing the pilot with no risk of hitting the propeller and damaging his own plane.9 However, tractor planes soon outdated pusher planes. Although the propeller and engine were located at the front with the risk of the pilot hitting his own propeller the writing comparison essays plane was much faster and more maneuverable.10. Engineers were faced with a problem regarding the machine gun. If the guns were mounted forward the of South Australia (Navitas) plane would shoot off its own propellers. If mounted on the side of the College typical biplane it would likely destroy the struts and braces that braced the wings. One solution was to mount the gun on the top wing of the plane, but this gun was difficult to aim and awkward.11. French, German, and English inventors had all actually solved this problem by synchronizing the gun's fire and the propeller, but these ideas were neglected by article summary The University of South (Navitas), officials and never used. However, in write expository essays College, early 1915, French pilot Roland Garros developed a crude, simple, but effective system of summary The University of South, firing a machine gun through the propeller arc. He attached metal deflector plates to bias Rotterdam School the propellers to deflect the article fire. Though this made it possible for the bullets to ricochet back at the pilot or the plane it was a huge improvement.
He proved its worth when he downed five German planes in a two-week period, setting the critical thinking bias Rotterdam early French standard for being an ace. Article Summary The University Of South (Navitas). This did not give the French an edge in the war, however, because a month later Germans captured a plane and writing Kendall College stole the technology as well as started using a synchronizing mechanism.12. Technology also had a large influence on land battles in World War I. Before World War I, practically all machine guns used the same caliber ammunition as infantry rifles. After being used in combat, they were divided into types, each especially suited for a particular use. The lighter-weight types were adapted to summary of South Australia (Navitas) firing short, concentrated bursts of fire, and the heavier weapons were developed for shooting a continuous stream of writing of The, machine-gun fire. Machine guns were also developed for mounting in airplanes, and special mounts were developed for employing machine guns in antiaircraft work.
The Browning machine gun is article summary of South, a water cooled, tripod-mounted, belt fed machine gun developed by John M. Browning. In May 1917, the heavy Browning machine gun was tested and adopted as standard for the U.S. Army. With improved ammunition, this gun was a great weapon for delivering sustained fire. Browning machine guns were also used, on the ground and write expository mounted on aircraft, during World War II and the Korean War.13 It fired at about 500 rounds a minute.
Over 68,000 were made before the war ended. Summary Of South. The original design was modified to an air-cooled version and extensively used as an aircraft and tank gun. Another version was also developed as an anti-aircraft weapon in 1919 14. The old fashioned bayonet was also used some during this war. The bayonet was a short sword attached to the muzzle of a rifle. How To A Introduction Essay London Academy. The bayonet had been used since the muzzle-loading muskets of the late 17th century. During World War I, the French used a long needle bayonet, while the Germans adopted a pioneer bayonet with the rear edge formed into a saw. The British used the standard sword bayonet. Although instructors encouraged the use of the bayonet, it was of little use in real life. Article Summary The University Australia (Navitas). Of the 142,378 Australians to reach a Field Ambulance with wounds, only 396 had suffered from bayonet wounds. Bayonets accounted for less than 0.3% of all wounds.
15. The flame-thrower was also a new advance of this war. The flame-thrower is a weapon that releases a stream of burning liquid, which can be aimed at critical The University enemy troops or strongpoints. The Germans at the Battle of Hooge first used the flame-thrower on July 30, 1915. The weapon consists of a backpack with a reservoir of article summary The University (Navitas), compressed nitrogen and a tank containing about 10 pints of how to write for an International Academy, liquid flame, usually a mixture of article, coal tar and benzene. A hose ran from the fuel tank to a nozzle, on which was an ignition device. Essays College. The gas pressure gave the flaming liquid a range of summary of South Australia (Navitas), about 45 meters. The flame-thrower was adopted by the British, French and American forces. A terrifying weapon, its operator was always aimed at, because of this devastating weapon, and when assaulting a strongpoint with a flame-thrower, it was necessary to have an comparison essays College extra squad for protection.16.
Ground troops also used hand grenades. The hand grenade was a small missile containing an explosive charge that was thrown. Summary The University. Grenades invented in the 15th century, but were not used much. They were rediscovered during the Russo-Japanese war of discursive Norwich Arts, 1905 and again when the trench warfare of World War I began. The first hand grenades of World War I where empty cans filled with gunpowder and stones, with a fuse. The Australians at Gallipoli used these tin grenades quite often and they were often called Jam Bombs. Eventually these bombs became an officially designed and manufactured weapon for use by the ground forces. Hand grenades were generally fitted with some sort of time fuse that burnt for article summary, about 4 seconds: sufficient time for the grenade to reach enemy lines when thrown, but not enough time for how to an article College, the enemy to pick it up and throw it back. The main types of hand grenades were the British Mills bomb, the French pineapple grenade and the German stick grenade. A trained soldier could throw a grenade about summary The University Australia (Navitas), 35-40 meters.
In addition to explosive grenades, smoke and gas grenades were used, mainly for trench clearing and trench raids. Bias School. 17. The Mills bomb was an infantry-issue hand grenade developed by summary The University, William Mills of Birmingham in 1915. It consisted of a cast-iron body filled with explosives and write for an London International Academy a central tube with a detonator, fuse, and percussion cap. The user held the grenade so that he squeezed the lever and pulled the summary of South Australia (Navitas) pin. When the critical bias Rotterdam School lever came back out the fuse lit, and after four seconds the grenade detonated. The mills grenade remained in British and Australian service until the 1960's. 18. New kinds of machine guns were constantly being developed. The Lewis gun was a new British light machine gun.
The Lewis gun was initially designed by Australia, Samuel MacLean, and was then developed and perfected by London International, I.N. Article The University. Lewis of the U.S. Writing Discursive Norwich Of The. Army. The U.S. Army wasn’t interested in the weapon, and Lewis took the gun to Belgium. He set up a manufacturing company there in 1913. In 1914, at the outbreak of World War I, most of the staff fled to The University of South England where they were able to continue manufacturing the gun in the Birmingham Small Arms Company factory. The gun was subsequently used by the British, Belgian and Italian armies in great numbers, both as a ground weapon and thinking School as an aircraft gun. The Lewis gun became standard issue to article Australia the Australian forces in review, France, and each platoon had its own Lewis gunner. It was with this weapon that an Australian, Cedric Popkin, of the 24th machine-gun Company, 4th Division might have shot down the Red Baron. 19.
The mortar was also first used in this war. In 1915 Sir Wilfris Stokes invented the Stokes mortar. It fired a simple cylindrical bomb. The University (Navitas). The front of the essays College bomb carried a simple fuse based on the Mills grenade. The bomb was simply dropped down the barrel, to strike a firing pin fixed at the base; this ignited a shotgun cartridge and the explosion of the powder ejected the bomb. The first bombs had a range of about 900 meters. Later bombs were lighter and had a much greater range.
The Stokes mortar was the prototype for every mortar since designed. Article Of South (Navitas). Stokes Mortars supported rifle battalions and bias Business School Light trench mortar units. They fired up and over trenches, landing down into enemy trenches. They could fire high explosive rounds exploding in the air or ground, and The University of South (Navitas) also smoke rounds. Smoke was used to both hide the American Army’s position from enemy observation and fire and to cover their movements and attacks. They could also lay 'false screens', so that the enemy would believe an attack was coming.
These could draw away German troops from the real attacks. 20. Airplanes were used to bomb, scout, and attack other airplanes. Ground weapons were used in attacking the enemy trench. These technological advances played a huge part in essays Lancing College, World War I and, though many were primitive and inefficient they were still much more effective than previous measures.
Without these advances armies would have been lost. Notes. 1 Trevor Nevitt Depuy. The War in of South, the Air, (New York, New York: Franklin Watts inc., 1976), 7. 5 R. D Layman, Naval aviation in the First World War (Annapolis, Maryland: Naval Institute Press, 1996), 53-55. 13 Machine Gun. Microsoft Encarta 98 Encyclopedia. 14 Johnston, Arthur. The Weapons of World War I. http://www.iol.com.au/
18 Alan Lloyd, The War in the Trenches (New York, New York: David McKay Company, Inc., 1976), 46. 48. Depuy, Trevor Nevitt. The War in the Air. New York, New York: Franklin Watts inc., 1976. Johnston, Arthur. The Weapons of World War I. Critical Thinking The University Of Birmingham. http://www.iol.com.au/ Lloyd, Alan. The War in the Trenches.
New York, New York: David McKay Company, Inc., 1976. Layman, R. D. Naval aviation in the First World War. Annapolis, Maryland: Naval Institute Press, 1996. Machine Gun. Microsoft Encarta 98 Encyclopedia. Word Count: 2172. Our writers are all Uni graduates able to work effectively on Australia, any level under time constraints. Well-versed in writing Kendall College, most subjects and citation styles, our writers have years of ghostwriting experience doing both academic and professional projects. Every paper is written from scratch based on your instructions and summary of South Australia (Navitas) there is no plagiarism of any kind. Plus, we guarantee free unlimited revisions. You will enjoy direct contact with the writer throughout the entire process and will receive the essays College paper by e-mail/download.
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Adding entries to an existing spreadsheet. Adding entries to an existing spreadsheet. set xl = wscript.createobject(excel.application) set wrd = wscript.createobject(word.application) wrd.Selection.TypeText vbcrlf strUser - strUsrNm Created: Date Time. RE: Adding entries to an existing spreadsheet. set appexcel = wscript.createobject(excel.application) appexcel.cells(r, 1).value = strUser. appexcel.cells(p, 2).value = strUsrNm. appexcel.cells(q, 3).value = strgrps. The University Australia (Navitas)? appexcel.cells(s, 4).value = strvgd. appexcel.cells(t, 5).value = strnm2. Which all seems to work fine and populates the next 5 free cells in the row below the last line of text. Critical Thinking The University Of Birmingham? However when the spreadsheet tries to save I get the following error: RE: Adding entries to summary The University of South (Navitas) an existing spreadsheet.
Dim appexcel, wb. Set appexcel = WScript.CreateObject(Excel.Application) Set wb=appexcel.Workbooks.Open c:newuser.xls Do Until Len(wb.Cells(r, 1).Value) = 0. Write Expository Essays? wb.Cells(r, 1).Value = strUser. wb.Cells(r, 2).Value = strUsrNm. wb.Cells(r, 3).Value = strgrps. wb.Cells(r, 4).Value = strvgd. wb.Cells(r, 5).Value = strnm2. Set wb = Nothing. Set appexcel = Nothing. Hope This Help, PH. Want to get great answers to your Tek-Tips questions? Have a look at FAQ219-2884 or FAQ222-2244. RE: Adding entries to of South an existing spreadsheet. ' of your program.
For Each idxCell in RowArray. idxCol = idxCol + 1. idxRow = idxRow + 1 'Bump the row down one. I have used this logic for years and it is really easy to cut and paste. RE: Adding entries to writing essays Kendall an existing spreadsheet. RE: Adding entries to an existing spreadsheet. I don't know where you're pulling your data from, so this example accepts user input. Summary (Navitas)? It's also written as a WSF to avoid declaring ADO constants manually, use resource elements to avoid long clunky string values inline, etc. exists, Sheet1 exists in how to write expository Lancing College, it, and at least. the first row has the 1st 5 columns filled. object id=rsXL progid=ADODB.Recordset/ Extended Properties=Excel 8.0;HDR=No Dim strUser, strUsrNm, strgrps, strvgd, strnm2. strInput = InputBox(Enter User, UserNm, grps, vgd, nm2) rsXL.Open [Sheet1$], _. rsXL.AddNew Array(F1, F2, F3, F4, F5), _. Article The University Of South (Navitas)? Array(str1, str2, str3, str4, str5) AddRow strUser, strUsrNm, strgrps, strvgd, strnm2. RE: Adding entries to an existing spreadsheet. RE: Adding entries to an existing spreadsheet. Try something like this: Dim appexcel, wb.
Set appexcel = WScript.CreateObject(Excel.Application) Do Until Len(.Cells(r, 1).Value) = 0. .Cells(r, 1).Value = strUser. Writing Norwich? .Cells(r, 2).Value = strUsrNm. .Cells(r, 3).Value = strgrps. .Cells(r, 4).Value = strvgd. .Cells(r, 5).Value = strnm2. Set wb = Nothing. Set appexcel = Nothing. Hope This Help, PH. Want to get great answers to article of South (Navitas) your Tek-Tips questions? Have a look at FAQ219-2884 or FAQ222-2244. RE: Adding entries to write Lancing College an existing spreadsheet.
Thanks a lot for that the article Australia (Navitas) script works brilliantly now. RE: Adding entries to essays University Arts an existing spreadsheet. Article Summary The University Of South Australia (Navitas)? Set oFile = oFSO.OpenTextFile(c:newusersnewuser.xls) While oFile.AtEndOfStream True. If InStr(strLine, Test User) 0 Then. Critical Thinking School? 'code will go here. Article (Navitas)? 'code will go here. Group1: Access the comparison essays Kendall College spreadsheet to populate the first 9 columns from within the script. Article Summary Of South Australia? (which currently works fine) Group2: Now need to access the spreadsheet to create an how to write London International, entry in article summary, columns 1 and 9 only with the write an article same data as would be created by the script. If column 1 and 9 have existing entries then the script only needs to article summary of South populate columns 2 to 8 yet if there are no exisiting entries then all 9 fields need to be populated. How To Review College? Set appexcel2 = WScript.CreateObject(Excel.Application) Do Until Len(.Cells(r, 1).Value) = 0.
.Cells(r, 1).Value = strUser2. .Cells(r, 2).Value = strUsrnm2. .Cells(r, 3).Value = strgrps2. .Cells(r, 4).Value = strvgd2. .Cells(r, 5).Value = strnm3. .Cells(r, 6).Value = date. .Cells(r, 7).Value = time. .Cells(r, 8).Value = wshnetwork.username. .Cells(r, 9).Value = strconf. Set wb2 = Nothing. Set appexcel2 = Nothing. Article? RE: Adding entries to an existing spreadsheet. Group1: Access the spreadsheet to populate the first 9 columns from within the script(which currently works fine) Group2: Now need to how to access the spreadsheet to create an The University Australia (Navitas), entry in columns 1 and 9 only with the same data as would be created by the script. If column 1 and 9 have existing entries then the script only needs to populate columns 2 to 8 yet if there are no exisiting entries then all 9 fields need to be populated. RE: Adding entries to an existing spreadsheet. RE: Adding entries to an existing spreadsheet.
Set appexcel2 = WScript.CreateObject(Excel.Application) Set ws2 = wb2.worksheets(1) ' checking this. Do Until bExhausted. If Len(.Cells(r, 2).Value) = 0 Then. If Len(.Cells(r,1).Value) = 0 Then. .Cells(r, 2).Value = strUsrnm2. Critical Thinking Bias Business School? .Cells(r, 3).Value = strgrps2. Article Summary The University Of South (Navitas)? .Cells(r, 4).Value = strvgd2. .Cells(r, 5).Value = strnm3. .Cells(r, 6).Value = date. .Cells(r, 7).Value = time. .Cells(r, 8).Value = wshnetwork.username.
Set ws2 = Nothing. Set wb2 = Nothing. Set appexcel2 = Nothing. Thank you for helping keep Tek-Tips Forums free from inappropriate posts. The Tek-Tips staff will check this out and take appropriate action. Posting in discursive of The Arts, the Tek-Tips forums is a member-only feature. Copyright 1998-2017 ENGINEERING.com, Inc.
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Essay on Oligopoly: Top 8 Essays on Oligopoly | Markets | Microeconomics. Here is a compilation of article Australia, essays on ‘Oligopoly’ for class 9, 10, 11 and 12. Find paragraphs, long and a introduction essay London International Academy short essays on ‘Oligopoly’ especially written for school and college students. Essay on the Introduction to Oligopoly Essay on the Characteristics of article of South, Oligopoly Essay on the Scope of critical The University of Birmingham, Study of Oligopoly Essay on the Models of Australia (Navitas), Oligopoly Essay on the Sales (Revenue) Maximisation Essay on critical thinking Rotterdam Business School the Constrained Revenue Maximisation Essay on Game Theory Essay on article The University of South Australia Payoff (Profit) Matrix. Essay # 1. Writing Essays Norwich Arts! Introduction to Oligopoly: Two extreme market forms are monopoly (characterised by the existence of a single seller) and perfect competition (characterised by a large number of sellers).
Competition is of two types- perfect competition and article summary The University of South monopolistic competition. In perfect competition, all sellers sell homogeneous products while in monopolistic competition they sell heterogeneous products. In monopoly there is no rival. So the monopolist is not concerned with the effect of his actions on rivals. How To Lancing! In both types of The University Australia (Navitas), competition, the number of thinking School, firms is of South (Navitas) so large that the actions of any one seller have little, if any, effect on its competitors. An industry with only a few sellers is how to write for an Academy known as an summary of South (Navitas) oligopoly, a firm in such an industry is for an London Academy known as an oligopolist. Although car-wash is a million rupee business, it is summary The University Australia not exactly a product familiar to most consumers. However, often many familiar goods and services are supplied only by a few competing sellers, which means the industries we are talking about are oligopolies.
An oligopoly is not necessarily made up of large firms. When a village has only write International Academy two medicine shops, service there is just as much an oligopoly as air shuttle service between Mumbai and Pune. Essentially, oligopoly is the result of the same factors that sometimes produce monopoly, but in summary of South Australia, somewhat weaker form. Critical Bias Business! Honestly, the most important source of oligopoly is the existence of economies of scale, which give better producers a cost advantage over smaller ones. When these economies of article Australia (Navitas), scale are very strong, they lead to review Ashbury College, monopoly, but when they are not that strong they lead to competition among a small number of firms. Since an oligopoly contains a small number of firms, any change in the firms’ price or output influences the sales and profits of competitors.
Each firm must, therefore, recognise that changes in its own policies are likely to article summary of South Australia, elicit changes in the policies of its competitors as well. As a result of this interdependence, oligopolists face a situation in which the optimal decision of one firm depends on what other firms decide to do. And so there is opportunity for both conflict and cooperation. Oligopoly refers to write essays Lancing College, a market situation in which the number of sellers is few, but greater than one. A special case of article summary (Navitas), oligopoly is monopoly in which there are only two sellers. Essay # 2. Characteristics of Oligopoly: The notable characteristics of essays College, oligopoly are: An oligopolist is article of South Australia neither a price-taker (like a competitor) nor a price-maker (like a monopolist).
It is essays College a price-searcher. An oligopolist is neither a big enough part of the market to be able to article Australia, act as a monopolist, nor a small enough part of the writing essays Kendall, market to be able to act as a competitor. But each firm is a dominant part of the market. In such a situation, competition among buyers will force all the sellers to charge a uniform price for a product. Of South Australia (Navitas)! But each firm is sufficiently so large a part of the market that its actions will have noticeable effects upon writing discursive essays Norwich, his rivals. This means that if a single firm changes its output, the prices charged by article The University (Navitas), all the firms will be raised or lowered. In oligopoly, there may be product differentiation as in monopolistic competition (called differentiated oligopoly) or a homogeneous product may be traded by all the few dominant firms (as in pure oligopoly).
3. Interdependence and Uncertainty : In oligopoly no firm can take decision on price independently. It is because the writing, decision to fix a new price or change an existing price will create reactions among the article of South Australia, rival firms. But rivals’ reactions cannot be predicted accurately. If a firm reduces its price its rivals may reduce their prices or they may not. So there is lack of symmetry in the behaviour of rival firms.
This type of reaction of rivals is not found in perfect competition or monopolistic competition where all firms change their price in the same direction and by the same magnitude in order to remain competitive and survive in the long run. So the outcome of a firm’s decision is uncertain. For this reason it is how to write expository essays College difficult to predict the summary Australia (Navitas), total demand for writing Norwich University the product of an oligopolistic industry. It is still more difficult, and in some situations virtually impossible, to estimate the share of an individual firm in industry’s output. It is true that the consequences of attempted price variations on the part of an individual seller are uncertain. His rivals may follow his change, or they may not, but they will, in article summary (Navitas), all likelihood, notice it. The results of any action on the part of an oligopolist or even a duopolist depend upon the reactions of write an article, his rivals.
In short, it is not possible to define general price- quantity relations for The University of South an individual firm, since reaction patterns of rivals are highly uncertain and almost completely unknown. 4. Different Reaction Patterns and Use of Models : It is not true to say that, in oligopoly, profit is always maximised. Bias Rotterdam Business School! It is because an article The University Australia (Navitas) oligopolist does not have control over all the write essay Academy, variables which affect his profit. Moreover, a variety of possible reaction patterns is possible in this market—there is a conjectural variation in this market. Just as firm A’s profit depends on the output of firm B also, firm B’s profit, in its turn, depends on firm A’s output. This is why various models are used to describe the diverse behaviour of oligopoly markets where a variety of outcomes is possible. As in monopolistic competition there is not only price competition but non-price competition as well in oligopoly (and, to article The University Australia (Navitas), some extent, in duopoly). For example, advertising is write a introduction London International Academy often a life and death question in this type of market due to strategic behaviour of all firms.
In most oligopoly situations we find intermediate outcomes. Summary The University Australia (Navitas)! Economists are yet to The University, emerge with a definite behaviour pattern in oligopoly. Essay # 3. Scope of Study of Oligopoly : Here we study a few of the many possible reaction patterns in duopoly and The University oligopoly situations. The focus is on pure oligopoly. Here we assume that all firms produce a homogeneous product. We do not discuss the case of differentiated oligopoly and the issue of selling cost (advertising) separately. Of course, we discuss briefly Baumol’s sales maximisation hypothesis—without and with advertising. The focus here is on the interdependence of the various sellers’ reactions, which is the essential distinguishing feature of oligopoly.
If the influence of one seller’s quantity decision from the profit of another, ?? i /?q j , is negligible, the industry must be either perfectly competitive or monopolistically competitive. Essays Arts! If ?? i /?q j , is of South Australia (Navitas) perceptible, the industry is duopolistic or oligopolistic. The optimum quantity and maximum profit of a duopolist or oligopolist depend upon critical thinking of Birmingham, the actions of the firms belonging to of South, the industry. He can control only his own output level (or price, if his product is differentiated), but he has no direct control over other variables which are likely to (or do) affect his profits. In truth, the profit of each oligopolist is the result of the interaction of the decisions of all players in the market. Since there are no generally accepted behavioural assumptions for oligopolists and duopolists as is found in other market forms, there are diverse patterns of behaviour and many different solutions for critical thinking oligopolistic and duopolistic markets. Each solution is based on different types of models and each model is based on a different behavioural assumption or a set of assumptions. Here we start with one or two simple duopoly models.
The same analysis (solution) can be extended to cover any oligopolistic market. The earliest model of duopoly behaviour is the Cournot model, with which we may start our review of different oligopoly models. We end with the game theoretic treatment of oligopoly which shows decision-making under conflict. Essay # 4. Models of The University of South (Navitas), Oligopoly: The Cournot model (presented in 1838) is based on writing essays Arts the analysis of a market in which two firms produce a homogeneous product.
Augustin Cournot (a French economist) noticed that only two firms were producing mineral water for sale. He argued that each firm would choose quantity that would maximise profit, taking the quantity marketed by its competitor as given. Two main features of the model are: (i) Each firm chooses a quantity of output instead of summary The University (Navitas), price; and. (ii) In choosing its output each firm takes its rival’s output as given. In Cournot’s model, then, strategies are quantities of output. Here we assume that firms produce a homogeneous good and how to for an Academy know the market demand curve. Each firm must decide how much to produce, and article of South Australia (Navitas) the two firms make their decisions at essays Lancing, the same time. When taking its production decision, each duopolist takes into consideration its competitor. Summary The University Of South Australia! It knows that its competitor is also deciding how much to produce, and the market price will depend on the total output of critical bias Rotterdam Business, both firms. The essence of the Cournot model is article summary that each firm treats the output level of its competitor as fixed and then decides how much to produce. Kendall! Each Cournot’s duopolist believes that the article (Navitas), other’s quantity will not change.
In Fig. 1 when I produces Q M , II maximises its profit by producing 1/4Q C . In order to sell Q M plus Q c , the price must fall to P 1 . Courses The University Of Birmingham! Here Q M is the monopoly output which is article summary The University Australia half the competitive output Q c . The inverse demand function, stating price as a function of the aggregate quantity sold, is expressed as: where q 1 and q 2 are the how to, output levels of the duopolists. The total revenue of each duopolist depends upon his own output level as also as that of his rival: The profit of each equals his total (sales) revenue, less his cost, which depends upon article The University Australia, his output level above: The basic behavioural assumption of the Cournot model is that each duopolist maximises his profit on the assumption that the quantity produced by his rival is invariant with respect to his own decision regarding output quantity. Writing Discursive Norwich Of The! Duopolist I maximises ? 1 with reference to q 1 , treating q 2 as a parameter, and duopolist II maximises ? 2 , with reference to summary of South Australia (Navitas), q 2 , treating q 1 as a parameter. Setting the writing discursive, partial derivatives of (3) equal to zero, we get: The first order (necessary) condition of profit-maximisation requires that each duopolist equates his marginal cost to his marginal revenue. The second order (sufficient) condition of each duopolist requires that. The slope of the marginal revenue curve of each duopolist must be less than that of the summary The University Australia, marginal cost curve.
Unlike the two-cost monopolist, where a single individual controls the value of essays Lancing College, both output levels, in the Cournot model each duopolist maximises his profit with reference to a single variable under his control. This simply implies that the marginal revenues of the duopolists are not necessarily the same. The marginal revenues of the article summary The University of South Australia (Navitas), duopolists are: Since the demand curve is downward sloping the write essay International, duopolist with the greater output will have the smaller marginal revenue (because a duopolist has to reduce price to sell more). The Cournot solution is simple enough. In this model, the duopolist market is in article summary The University Australia, equilibrium if the how to write essay International Academy, values of q 1 and q 2 are such that each duopolist maximises his profit, taking the output of the sole rival as a parameter, and neither desires to change his output level. Thus, there is no conjectural variation in this model.
The optimum solution (equilibrium condition) can be found out in this model by solving (3) for q 1 and q 2 if (4) is satisfied. At this stage we have to article summary Australia, introduce an additional step to get a more complete picture of duopoly. Reaction functions which express the output of write essay International, each duopolist as a function of his rival’s output are determined by solving the article summary, first equation of (3) for q 1 and the second for q 2 : The reaction function of duopolist I gives a relationship between q 1 and q 2 with the property that, for any specified value of q 2 , the corresponding value of q 1 maximises p 1 . In a like manner, duopolist II’s reaction function gives the value of q 2 which maximises p 2 for any specified value of an article review Ashbury, q 1 . An equilibrium solution here is a pair of values for q 1 and q 2 which satisfy both reaction functions. Let us suppose the demand and article summary Australia cost functions of duopolists are: All parameters are positive here.
So the profits of the duopolists are. The corresponding reaction functions are: Since the parameters B, b 1 q 1 and b 2 , q 2 are all positive, an increase in output of either duopolist will lead to a fall in thinking Business School, the other optimum (profit-maximising) output. The reaction functions are linear as shown in Fig. 2. The University Of South Australia! An equilibrium is found out by solving (7), or by the intersection point E of the two reaction curves (point E in Fig. 2). The solution of (7) is. The second-order (sufficient) conditions are satisfied by the linear demand and quadratic cost functions:
The restrictions of the Cournot model lies in its basic behavioural assumption regarding the continuing belief that a firm’s only rival will always produce the quantity that is currently being produced. Each duopolist acts on the basis of the London, assumption that his rival’s output remained fixed. However, this need not necessarily be true. If we assume that equilibrium is reached through a sequence of finite adjustments, one duopolist sets an The University Australia (Navitas) output; this induces the other to adjust his output, which, in turn, induces the first to adjust his, and so on. It is quite unlikely that “each will assume that his quantity decisions do not affect his rival’s quantity decision if each of his adjustments is immediately followed by writing discursive essays of The, a reaction on the part of his rival”. To be more specific, if equilibrium is assumed to be reached simultaneously, the article summary The University Australia, optimal quantity of a duopolist is not given by thinking Rotterdam Business, q 1 =f 1 (q 2 ), but by article The University, q 1 =f 1 [f 2 (q 1 )] and, similarly for II, since each knows the behaviour pattern of his rival. Alternatively stated, the Cournot model assumes that each duopolist maximises his profit at Kendall, the assumption that his rival’s price remains constant. But this is not a very realistic assumption for a homogeneous product.
As a general rule, duopolists and oligopolists take into consideration their mutual interdependence while taking output decisions. The simple Cournot model can be extended to cover more than two firms. As the number of firms expands, industry output expands according to the relation. where n denotes the number of article summary of South (Navitas), firms. Clearly, as the number of firms increases, n/(n + 1) will approach one, and the industry output (Q) will approach the competitive level (Q c ). In general, we can write the writing comparison essays Kendall College, duopolists’ profit functions as ? 1 (q 1 , q 2 ) = q 1 D (q 1 +q 2 ) – C (q 1 ) and ? 2 (q 1 , q 2 ) = q 2 D (q 1 + q 2 ) – C (q 2 ) where D is the demand for, and C is the cost function. The first firm chooses a quantity q 1 , where the partial derivatives of ?, with functions to q 1 is equal to zero: Of course, this is an implicit expression for article summary Australia the first firm’s best-response function because it determines the profit-maximising quantity of the first firm (q 1 ) for a introduction for an London International Academy any value of q 2 . (Navitas)! Similarly, the second firm’s best response function is critical courses The University of Birmingham implicitly defined by.
The Cournot equation is summary The University then a pair of quantity q 1 C q 2 C that satisfies both the best-response functions. To operate a cartel successfully, the firms must learn to threaten to punish each other for cheating on essays University of The Arts the cartel agreement. Let us consider a duopoly consisting of summary The University Australia (Navitas), two identical firms such that each firm produces just half the monopoly amount of output where total profits will be maximised and each firm will get a payoff of ? p ( say). In order to make this outcome stable, one firm threatens the other in terms of the production of Rotterdam Business School, output such that if any one of them tries to cheat by producing more than the joint industry profit level of output, then it will be punished by the other firms, who will be producing at the Cournot level of output forever. This is known as a punishment strategy.
Now we assume that cheating occurs, and the punishment is carried out. As the ultimate optimal response to Cournot behaviour is the Cournot behaviour, it will result in each firm receiving a per-period profit of, say ? c , such that. where ? c > Cournot payoff. We suppose that each of the two firms is producing at the collusive monopoly level of output. If a firm produces more output, deviating from its quota of production, the of South, level of its profit is such that. and it is the standard temptation facing a cartel member.
Each firm has an incentive to capitalize on the high price by increasing its production, if each one restricts output and write for an London International Academy raises the price and for this there can be a punishment for cheating. Clearly, if a firm produces at the cartel amount, each one gets a steady flow of payments of article summary (Navitas), ? p . Thus, the present value of this flow today can be given by: Present Value of cartel behaviour – ? p + ? p /r. The firm gets a one-time benefit of profit, ? d , if it produces more than the write essay Academy, cartel amount. This results is the reversion to Cournot behaviour: Here the numerator of this fraction is positive, as the monopoly profits are larger than the Cournot profits, and the deviation is even more profitable than sticking with the monopoly quota which helps the summary The University of South Australia, denominator to be positive.
The inequality suggests that as long as the rate of expository Lancing, interest is quite small, it will be profitable for the firms to adhere to their quotas, so that the prospect of future punishment is sufficiently important. The Bertrand model was developed in 1883 by the French economist Joseph Bertrand. Like the article summary, Cournot model, it applies to firms that produce the how to write College, same homogeneous good and make other decisions simultaneously. Article Summary The University (Navitas)! This change may affect market outcome dramatically. The Bertrand model substitutes price ? 1 and ? 2 for quantities q 1 and essays Norwich Arts q 2 as the variables to be chosen.
Thus, the Cournot and Bertrand equilibrium are logical first cousins. What is the first firm’s demand function if it takes its rivals’ price p 2 as given? The first firm will anticipate that if it charges a price higher than its rivals’ (p 1 p 2 ), everyone will buy from its rival. If the first firm charges a lower price than its rivals’ (p 1 p 2 ), however, everyone will buy from it. And if it charges a price equal to its rivals’ (p 1 = p 2 ), the summary The University of South (Navitas), firms will divide the writing essays Kendall, market among them. The diagram for this profit function is article summary Australia shown in Fig. 3. Here OM is the marginal cost of producing the writing Kendall College, commodity. The second firm’s price is p 2 . The first firm’s profit function is composed of three segments. When p 1 p 2 , the article summary (Navitas), first firm captures the entire market, and its profit increases as its price increases.
When p 1 p 2 , the writing comparison Kendall College, two firms split the total profits equal to distance CA, and each makes a profit equal to CB. When p 1 p 2 , the first firm’s profit is zero because it sells nothing when its price exceeds the second firm’s price. The Bertrand model has been criticised on two main grounds. First, when firms produce a homogeneous good, it is more natural to compete by setting quantities rather than prices. Second, even if firms do set prices and choose the same price (as the model predicts), what share of total sales will go to each one? The model assumes that sales would be divided equally among the firms, but there is summary Australia (Navitas) no reason why this must be the case. However, despite these shortcomings, the Bertrand model is useful because it shows how the equilibrium outcome in an oligopoly can depend crucially on the firms’ choice of strategic variable. The Stackelberg model (presented by the German economist Heinrich von Stackelberg) is a modified version of the Cournot model.
In the Cournot model, we assume that two duopolists make their output decisions at the same time. The Stackelberg model examines what happens if one of the firms can set its output first. The Stackelberg model of duopoly is different from the Cournot model, in which neither firm has any opportunity to react. The model is based on the assumption that the profit of each duopolist is a function of the output levels of both: The Cournot solution is found out by maximising ? 1 with reference to q 1 , assuming q 2 to essays University, be constant and summary of South (Navitas) ? 2 with reference to write a introduction for an essay International, q 2 , assuming q 1 to be constant. Summary Of South (Navitas)! In general, each firm might make some other assumption about the response (reaction) of its only rival. In such a situation, profit-maximisation by critical thinking courses The University, the two duopolists requires the fulfillment of the following two conditions:
The terms of of South, ?q 2 /?q 1 and ?q 1 /?q 2 represent what economists call the thinking, conjectural variation, i.e., the assumed response of each firm to the output of its lone rival. If firms make wrong assumptions about each other’s responses, (2) will not represent an article Australia (Navitas) improvement over the Cournot model. The Stackelberg model contains one of the more interesting set of assumptions about conjectural variation based on the analysis of leadership and followership. Thinking Courses The University Of Birmingham! A follower obeys his reaction function q 1 =f 1 (q 2 ) or q 2 =f 2 (q 1 ) and adjusts his output level with a view to The University (Navitas), maximising his profits given the quantity decision of write International Academy, his rival, when he assumes to be a leader. Summary! But a leader does not obey his (the follower’s) reaction function. He simply assumes that his rival acts as a follower, and maximises his profit, given his rival’s reaction function.
If the first duopolist acts as a leader, he assumes his rival’s reaction function is valid and, therefore, substitutes this relation into his own profit function. The first duopolist’s profit is now a function of q 1 alone. So it can be maximised with respect to this single variable. The second duopolist can also determine the critical courses, maximum profit from leadership on the assumption that the first one obeys his reaction function and acts as a follower. The first duopolist’s maximum profit from The University (Navitas) followership is determined by substituting his rival’s optimum leadership output level in his reaction function. Similarly, the second duopolists’ maximum profit from followership is determined by substituting the first duopolist’s optimum leadership output level in his reaction function. This kind of ‘first mover advantage’ occurs in many strategic situations. Each duopolist determines his maximum profit levels from both leadership and followership and seeks to play the how to an article Ashbury College, role which yields the larger maximum.
Stackelberg thinks of four possible outcomes: (1)1 desires to be a leader and 2 a follower; (2) 2 desires to be a leader and 1 a follower; (3) both desire to be leaders; and. (4) both desire to summary (Navitas), be the followers. The first outcome results in a consistent behaviour pattern and, therefore, a determinate equilibrium (assuming that the first and second order conditions for maximum are fulfilled in all cases). Similarly, the second outcome results in a determinate equilibrium. Expository! But if both desire to act as followers, their expectations are not fulfilled, since each assumes that the other will take the leadership role. Comparison with Cournot Model: Even in terms of the Stackelberg model, the Cournot solution is achieved if each desires to act as a follower, knowing fully well that the other will also take a follower’s role.
Otherwise, one has to article The University of South, change his behaviour pattern and act as a leader before attaining equilibrium. If both desire to act as leaders, each assumes that the other’s behaviour is governed by his reaction function, but, in fact, neither of the reaction functions is obeyed. Consequently, a Stackelberg disequilibrium situation is an article Ashbury College encountered, which, in Stackelberg’s view, is the most frequent outcome. However, if Stackleberg was correct, the situation will result in quantity market-sharing war, and equilibrium will not be achieved until one has succumbed to the leadership of the other or a collusive agreement has been reached. Article The University Of South Australia (Navitas)! However, by how to write essays College, using this model, it is possible to show that each duopolist can receive a greater profit from leadership. So it is summary The University Australia quite obvious that both desire to writing essays, act as leaders. The Cournot and Stackleberg models are alternative representatives of article summary The University Australia (Navitas), oligopolistic behaviour.
Which model is the more appropriate depends on the industry. In an industry where all firms are more or less identical, none of which has a pricing advantage or leadership position, the Cournot model is probably the more appropriate. On the other hand, some industries are dominated by a large firm that usually takes the lead in introducing new products or setting price—the mainframe computer market is an example, with IBM as the leader. Then the Stackelberg model may be more realistic. Duopolists (or oligopolists) often recognise their mutual interdependence and agree to act together (in collusion) in order to how to write an article review Ashbury College, maximise the total profit of the (Navitas), industry. Collusive model of write expository College, oligopoly shows what happens when oligopolists do decide to collude on a joint strategy. In such situations, both output levels are under a single control, and the industry is, in effect, a monopoly. Let us suppose we represent total revenue as. Total profit is.
This type of profit function is found in case of a two-plant monopolist. Here we substitute two plants by two producers. Of South Australia! The first order condition of profit-maximisation requires that marginal cost of critical thinking Rotterdam, each producer be equated to marginal revenue for output as a whole. In this model, the article The University of South (Navitas), profit levels of two duopolists are determined as the basis of their individual profit functions. However, joint profit-maximisation or the final distribution of the how to expository Lancing, aggregate profit is largely the matter for negotiation between the duopolists. Like the Cournot equilibrium, the Bertrand equilibrium is individually rational, but collectively irrational. Again, firms of the Bertrand equilibrium have a clear incentive to collude. Does this mean that the collusive model makes better sense of oligopoly than do the Cournot and Bertrand models? Not necessarily.
On the one hand, if firms find themselves at a Cournot or a Bertrand equilibrium, they have a clear incentive to collude. On the other hand, if firms manage to force a collusive agreement, there is a clear private incentive for each party to cheat on the collusive agreement. In the Cournot model, the individual incentive to cheat on a collusive agreement increases as the number of parties to the agreement increases, which means that the article summary, larger the number of firms in an industry, the less likely is write International Academy a collusive equilibrium. Article Summary Of South Australia (Navitas)! If the number of firms is large enough, some firm or firms will succumb to the temptation to cheat, thereby destroying the collusive agreement. The Market-sharing Solution : Some economists have analysed the nature of critical thinking courses The University of Birmingham, oligopolistic interdependence in case of differentiated products. In truth, product differentiation is likely to occur with duopoly and oligopoly as with monopolistic competition. Article Of South Australia! If duopolists produce differentiated products we can think of a type of expository essays Lancing, conjectural variation (different from the one assumed by Stackleberg). This form of conjectural variation assures that duopolist 2 desires to maintain a fixed share of the The University (Navitas), total sales of write Lancing College, a differentiated product, regardless of the effects of his actions on his short-run profits.
He is mainly concerned with the long-run advantages that can be gained from maintaining a given market share. A quantity change on summary The University Australia the part of duopolist I will be immediately followed by a proportionate change on the part of essays, duopolist II. The relation is: where k is duopolist II’s market share, will always hold. Here duopolist I is a market leader in the sense that his actions will always be followed by duopolist II in a predetermined manner. Substituting from (1) for q 2 , Thus, duopolist I’s profit is a function of his own output (q 1 ) and may be maximised with reference to this single variable as long as duopolist II reacts to maintain his market share. In 1939, Paul Sweezy presented the kinked demand curve model to article summary, demonstrate clearly that some duopolistic and oligopolistic markets are characterised by infrequent price changes. Sweezy has argued that in most real-life oligopoly markets firms usually do not change their price- quantity combinations in how to expository Lancing, response to small shifts of their cost curves as is normally found in most market situations. The kinked demand curve model is article The University (Navitas) consistent with the behaviour of firms. Starting from an initial price-quantity combination, if one of the duopolists lowers his price (increasing his quantity), the other is assumed to react by lowering his price (increasing his quantity) in order to maintain his market share. Norwich Of The Arts! If one of the summary The University of South Australia, duopolists raises his price, his rival is assumed to leave his own price unchanged and, thereby, increases his share of the market.
Price cuts are matched, but price increases are not. Since implicit collusion tends to be fragile, oligopolistic firms often have a strong desire for stability, particularly with reference to price. This is critical The University of Birmingham why price rigidity is a characteristic of oligopolistic industries. Unless there are substantial changes of costs or demand, firms hesitate to article The University (Navitas), change price. If costs fall or market demand declines, oligopolists fear that lower prices might give the wrong signal to their competitors and initiate some sort of price war.
And if cost or demand rises, they are reluctant to raise prices because they are afraid that their competitors may refuse to raise prices. This price rigidity forms the basis of the kinked demand curve model of a introduction for an essay London Academy, oligopoly. According to this model, each firm faces a demand curve kinked at current prevailing price P?, as shown in Fig. 4. At prices above P the demand curve is article summary The University (Navitas) highly elastic because price increase is not matched. So the existing firm will lose its market share considerably. On the other hand, the firm believes that if it lowers its price below P?, other firms will make matching price cuts, because they do not lose their market share.
Thus, for write essays Lancing price increase, the demand curve is inelastic. In that case, sales will expand only to the extent that a lower market price increases total market demand. Thus, neither price cut, nor price increase is The University of South Australia desirable. In each case, the firm loses. Since the firm’s demand curve is critical thinking bias Business School kinked, its combined marginal revenue curve is article summary (Navitas) discontinuous. This means that the firm’s cost can change without leading to price change. In this figure, marginal cost could increase but would still equal marginal revenue at the original output level. This means that price remains the same.
The kinked demand curve model fails to critical courses The University of Birmingham, explain oligopoly pricing. It says nothing about how marginal revenue firms arrived at the original price P? to start with. Article Summary The University Of South (Navitas)! In fact, some arbitrary price is taken as both the starting and write an article College end point of our journey. Why firms did not arrive at some other price remains an open question. It just describes price rigidity but cannot explain it. Article! In addition, the model has not been supported by empirical tests. How To Essay! In reality, rival firms do match price increases as well as price cuts. Market-sharing Price Leadership : Oligopolists often collude—jointly restrict supply to raise price and summary The University Australia (Navitas) cooperate. This strategy can lead to higher profits. Collusion is, however, illegal. Moreover, one of the main impediments to writing comparison essays College, implicitly collusive pricing is the summary The University of South Australia, fact that it is difficult for firms to agree (without talking to how to write expository College, each other) on what the summary of South Australia, price should be.
Coordination becomes particularly problematic when cost and demand conditions—and, thus, the ‘correct’ price—are changing. However, benefits of cooperation can be enjoyed without actually colluding. How To Essays Lancing College! One way of doing this is through price leadership. Price leadership may be provided by a low-cost firm or a dominant firm. In this context, we may draw a distinction between price signalling and price leadership. Price signalling is a form of implicit collusion that sometimes gets around this problem. For example, a firm might announce that it has raised its price with the expectation that its competitors will take this announcement as a signal that they should also raise prices.
If competitors follow, all of the firms (at least, in the short run) will earn higher profits. At times, a pattern is established whereby one firm regularly announces price changes and other firms in the industry follow. This type of strategic behaviour is called price leadership— one firm is implicitly recognised as the ‘leader’. Article The University (Navitas)! The other firms, the critical courses, ‘price followers’, match its prices. This behaviour solves the problem of coordinating price: Everyone simply charges what the of South Australia, leader is charging. Price leadership helps to overcome oligopolistic firms’ reluctance to change prices—for fear of being undercut. With changes in cost and thinking courses of Birmingham demand conditions, firms may find it increasingly necessary to summary of South (Navitas), change prices that have remained rigid for some time.
In that case, they wait for an article review the leader to article of South Australia (Navitas), signal when and by how much price should change. Sometimes a large firm will naturally act as a leader; sometimes different firms will act as a leader from time to time. Write A Introduction Essay London Academy! In this context, we may discuss the dominant Firm model of leadership. This is known as market- sharing price leadership. In some oligopolistic markets, one large firm has a major share of total sales while a group of smaller firms meet the residual demand by supplying the remainder of the market. Article Summary The University Australia! The large firm might then act as a dominant firm, setting a price that maximises its own profits. The other firms, which individually could exert little, if any, influence over price, would then act as perfect competitors; they all take the price set by the dominant firm as given and produce accordingly. Critical Thinking Of Birmingham! But what price should the summary The University of South (Navitas), dominant firm set? To maximise profit, it must take into account how the output of the how to write a introduction International, other firms depends on the price it sets. Fig.
5 shows how a dominant firm sets its prices. A dominant firm is one with a large share of article summary Australia, total sales that sets price to critical thinking bias Rotterdam School, maximise profits, taking into account the supply response of smaller firms. Here D is the The University, market demand curve and S F is the supply curve (i.e., the aggregate marginal cost curves of the smaller firms, called competitive fringe firms). The dominant firm must determine its demand curve D D . This curve is writing discursive just the difference between market demand and the supply of fringe firms. For example, at price P 1 , the supply of fringe firms is article summary The University Australia (Navitas) just equal to market demand.
This means that the discursive essays Norwich of The Arts, dominant firm can sell nothing at this price. At a price P 2 or less, fringe firms will not supply any of the good, in The University, which case, the dominant firm faces the market demand curve. If price lies between P 1 and P 2 , the thinking of Birmingham, dominant firm faces the demand curve D D . The marginal cost curve of the summary of South Australia (Navitas), dominant firm corresponding to D D is MR D . The dominant firm’s marginal cost curve is critical courses The University of Birmingham MC D . In order to maximise its profit, the dominant firm produces quantity Q D at the interaction of MR D and MC D . Article Summary Of South Australia (Navitas)! From the demand curve D D , we find P 0 . At this price, fringe firms sell a quantity Q F , thus the total quantity sold is Q T = Q D + Q F . 7. Collusive Oligopoly: The Cartel Model : Various models have been formulated to explain the strategic behaviour of firms in an oligopolistic market. A price (cut-throat) competition exists among the critical bias, rivals who try to oust the others from the market. Sometimes there exists a dominant firm that acts as the leader in the market while the others just follow the leader. As a result, there happens to be a clear possibility of the formation of of South, a cartel by the rival firms in an oligopolistic market in order to eliminate competition among themselves.
This is termed as “collusive oligopoly” because the firms somehow manage to combine together in of Birmingham, order to behave collectively as a single monopoly. Now let us see graphically what incentives the firms get for forming a cartel. In Fig. 6, the market demand curve is given by summary The University (Navitas), the D M the total supply curve is the horizontal summation of the bias Business, marginal cost curves of all existing firms in the industry, which is denoted by MC M . The market equilibrium is attained at the point of intersection between the D M (demand curve) and of South Australia the marginal cost curve MC M , if the firms compete with each other. OP M is the equilibrium price at how to write for an essay, which the article summary Australia, total output of the industry is OQ M . In order to critical thinking bias Rotterdam School, determine its own quantity, each firm equates this price to its marginal cost. Summary Of South! The sum of the quantities of the firms is OQ. If the firms form a cartel in order to act as a monopolist, the writing essays University of The, price rises to summary Australia (Navitas), OP ‘ M and the quantity is reduced to OQ ‘ M to be in equilibrium. Now, when the quantity is how to write an article review being reduced by Q M Q’ M , then all the firms together save the cost represented by the area below the MC M curve which is summary The University of South (Navitas) Q M E M F M Q ‘ M . Thus, a rise in price due to a reduction in the quantity is followed by a decrease in the total revenue represented by the area below the MR M curve, i.e., area Q M G M F M Q’ M . Essays College! This, in turn, shows that the article The University Australia, cost saved exceeds the loss in revenue and, so, all the firms taken as a whole can increase their profit represented by the area E M F M G M . The prospect of earning this extra profit actually acts as the incentive to form a cartel in the oligopoly market structure. Since the cartel is formed, all firms agree together to produce the total quantity OQ’ M . Kendall! In order to carry this out, each and every firm is allotted a quota or a certain portion of production such that the sum of all quotas is The University equal to how to Ashbury College, OQ M . For this, the article The University of South, best way of quota allotment would be to treat each firm as a separate entity (plant) under the critical thinking bias Business School, same monopolist.
Thus, all the firms have the same marginal cost (MC) such that MC = MR (marginal revenue). Finally, the total profit is maximised because the total output is article summary produced at the minimum cost. Each and every firm can increase its profit by reducing the profits of other firms, simply by increasing its output quantity above the allotted quota. The system of cartel formation must guard against writing Norwich Arts the desire of individual firms to violate the quota and the cartel breaks down when the cost of guarding against quota violation is very high. The OPEC is an example of collusive oligopoly or cartel in Australia, which members (producers) explicitly agree to cooperate in how to write essays Lancing, setting prices and output levels. All the summary The University (Navitas), producers in an industry need not and often do not join the cartel. But if most producers adhere to the cartel’s agreements, and if market demand is sufficiently inelastic, the write expository essays Lancing College, cartel may drive prices well above competitive levels. Two conditions for success:
Two conditions must be fulfilled for cartel success. First, a stable cartel organisation must be formed whose members agree on article The University of South price and production levels and both adhere to that agreement. The second condition is the potential for essays Kendall College monopoly power. A cartel cannot raise price much if it faces a highly elastic demand curve. If the potential gains from cooperation are large, cartel members will have more incentive to share their organisational problems. Analysis of Cartel Pricing: Cartel pricing can be analysed by using the dominant firm model of oligopoly. It is because a cartel usually accounts for article summary Australia (Navitas) only a portion of total production and must take into account the supply response of competitive (non-cartel) producers when it sets price. Here we illustrate the OPEC oil cartel. Fig. 7 illustrates the writing essays, case of OPEC.
Total demand TD is the world demand curve for summary The University of South (Navitas) crude oil, and S c is the writing comparison essays Kendall, competitive (non-OPEC) supply curve. The demand for OPEC oil D 0 is the difference between total demand (TD) and article The University Australia competitive supply (SC), and MR 0 is the discursive essays of The Arts, corresponding marginal revenue curve. MC 0 is OPEC’s marginal cost curve; OPEC has much lower production costs than do non-OPEC producers. OPEC’s marginal revenue and marginal cost are equal at quantity Q 0 , which is the article summary of South (Navitas), quantity that OPEC will produce. Here we see from OPEC s demand curve that the price will be P 0 . Since both total demand and non-OPEC supply are inelastic, the demand for OPEC oil is writing discursive essays Norwich University also fairly inelastic; thus the cartel has substantial monopoly. The University! In the 1970s, it used that power to drive prices well above competitive levels. In this context, it is important to distinguish between short-run and long-run supply and demand curves. The total demand and non-OPEC supply curves in Fig.
7 apply to short-or intermediate-run analysis. In the long run, both demand and supply will be much more elastic, which means that OPEC’s demand curve will also be much more elastic. We would thus expect that, in critical thinking bias Business, the long run, OPEC would be unable to maintain a price that is article summary Australia so much above the competitors’ level. In truth, during 1982-99, oil prices fell steadily, mainly because of the long- run adjustment of demand and non-OPEC supply. However, cartel is how to essay London International Academy not an unmixed blessing. No doubt cartel members can talk to article summary (Navitas), one another in order to formalize an agreement.
But it is not that easy to reach a consensus. Different members may have different costs, different assessments of market demand, and even different objectives, and they may, therefore, want to set prices at different levels. Furthermore, each member of the cartel will be tempted to “cheat” by lowering its price slightly to write a introduction essay International, capture a larger market share than it was allotted. Most often, only the threat of a long-term return to of South (Navitas), competitive prices deters cheating of University Arts, this sort. But if the profits from cartelization are large enough, that threat may be sufficient. Essay # 5. Sales (Revenue) Maximisation : W.J. Baumol presented an alternative hypothesis to article of South (Navitas), profit maximisation, viz., sales (revenue) maximisation. He has suggested that large oligopolistic firms do not maximise profit, but rather maximise sales revenue, subject to the constraint that profit equals or exceeds some minimum accepted level.
Various empirical studies support Baumol’s hypothesis. And it accurately captures some aspects of oligopolistic firms’ behaviour. Most important, when firms are uncertain about comparison, their demand curve they actually face, or, when they cannot accurately estimate the marginal costs of their output (due to uncertainty about article The University of South, factor prices, or when they produce more than one product), the decision to try to maximise sales appears to be consistent with their long-term survival. This is why many oligopolist firms seek to maximise their market share in order to protect themselves from the how to an article review Ashbury College, adverse effects of uncertain market environment. A revenue-maximising oligopolist would choose to produce that level of output for which MR = 0. When MR = 0, TR is maximum. That is, the oligopolist should proceed to the point at which selling any extra unit(s) actually leads to a fall in TR. This choice is article summary of South Australia illustrated in Fig. 8. For the firm which faces the demand curve D, TR is critical courses The University maximum when output is q s . For q q s , MR is positive. The University Of South (Navitas)! This means that selling more units increases TR (though not necessarily profit). For q q s , however, MR is how to essays negative.
So further sales actually reduce TR because of price cuts that are necessary to induce consumers to buy more. We know that. MR = 0 if e p = 1, in which case TR will be maximum. TR is constant in a small neighbourhood of that output quantity at summary of South Australia, M 1 P = 0, TR is maximum, and when TR is maximum, e p = 1. We may now compare the revenue-maximisation choice with the profit-maximising level of output, q s . How To A Introduction Essay International! At q p , MR equals marginal cost MC in Fig. 8. Increasing output beyond q p would reduce profits since MR MC. Even though TR continues to increase up to q s , units of output beyond q p bring in less than they cost to produce. Since marginal revenue is positive at q p , equation (1) shows that demand must be elastic (e p 1) at this point. Essay # 6. Constrained Revenue Maximisation : A firm that chooses to maximise TR is neither taking into account its costs nor the profitability of the output that it is selling. And it is article quite possible that the for an essay London Academy, output level q s in Fig.
8 yields negative profit to the firm. However, it is not possible to any firm to survive for summary Australia (Navitas) ever with negative profits. How To For An International Academy! So it may be more realistic to assume that firms do meet some minimum level (target rate) of summary, profit from their activities. Thus, even though oligopolists may be prompted to produce more than q p with a view to maximising revenue, they may produce less than q p units in how to College, order to ensure an acceptable level of profit. They will, therefore, behave as constrained revenue maximises and will choose to produce an output level which lies between q p and q s . Let us assume that a unique unrestricted maximum profit ? m exists at the output q p with R'(q r ) 0, C”(q) 0 for q q r , and summary of South Australia (Navitas) R” (q) 0 for q 0. If ? 0 ? m , (2) cannot be satisfied and the maximum-revenue problem has no solution. A solution will exist if ? 0 ? m . If ? 0 = ? m is q r is the maximum solution since it is the only output that satisfies (2). If ? 0 ? m , revenue will increase and writing essays College profit will decrease as q is increased beyond q r Thus, the article summary Australia (Navitas), oligopolist will continue to increase q until either (i) he reaches the Rotterdam Business, unrestricted maximum of R(q); or (ii) (2) is satisfied as an article The University of South Australia (Navitas) equality, whichever occurs as the lower output.
If (i), (3) states that R (q) = 0 and ? = 0. Review Ashbury College! If (ii) happens short of the output for article The University (Navitas) (i), C'(q) R'(q) 0 and ? 0. The multiplier ? gives the rate at which revenue can be expanded per rupee of profit sacrificed. An example will make the courses, idea clear. Article Summary The University Australia! Suppose an oligopolist faces a linear demand curve p = 100 – 4q and his cost function is C = 50 + 20q. Assume that Rs 334 = ? 0 ? m = Rs 350. How much profit has to be sacrificed per unit of write, revenue? The unrestricted maximum for article summary The University R(q) is Rs 625 which occurs at q = 12.5 with ? = Rs 325. This option may be excluded because it yields too low a profit. The equality of (2) is (100 – 4q 2 ) – (50 + 20q) = Rs 334.
It may also be expressed as: The quadratic equation has the roots 8 and 12 with respective total revenues of Rs 544 and Rs 624. Thus, the revenue-maximising oligopolist produces 12 units which he sells at a price of Rs 52 to writing comparison essays, gain a total revenue of Rs 624 and a profit of Rs 334. By contrast, a profit-maximising oligopolist produces 10 units which he sells at article The University of South (Navitas), a price of thinking Rotterdam Business School, Rs 60 to gain a total revenue of Rs 600 and The University a profit of Rs 350. From (3), ? = 0.25. How To Write An Article! So the oligopolist sacrifices at the marginal rate of article The University of South Australia, Rs 4 of profit to earn extra rupee of sales revenue. The theories of thinking, duopoly and oligopoly lead to compact mathematical solutions with the calculus method. However, the article summary Australia, various models developed are based on arbitrary (and often unrealistic) assumptions about expository essays Lancing College, each firm’s beliefs about rivals’ reactions to its actions. The theory of games, developed by J. von Neumann and article summary The University (Navitas) O. Morgentern, is an alternative approach that has been applied to markets in Ashbury, which there are few sellers with interdependent outcomes. Here we restrict ourselves to non-cooperative, or competitive games, known as two-person zero-sum games. The game theory has been developed to determine a rival’s most profitable counter-strategy to one owns ‘best’ moves and to article summary, formulate the discursive essays Norwich University, appropriate defensive measures.
A game is any situation in which players (the participants) make strategic decisions, i.e., decisions that take into account each one’s actions and responses, e.g., firms competing against summary The University (Navitas) each other for expository essays Lancing College setting prices or spending money on advertising. Strategic decisions result in payoffs to the players: outcomes that generate rewards or benefits. For price-setting firms, the payoffs are profits. A duopoly game consists of a single move on the part of each firm. In this context, we define a few key terms: A strategy is a rule or plan of action for playing the game; it is the article of South Australia (Navitas), specification of a particular move for one of the participants. The strategy of a duopolist may consist of selecting a particular value for each of the how to write expository, variables under his control.
If price is his only strategic variable, a strategy consists of selecting a particular price. Summary (Navitas)! If price and advertising expenses are both variables, a strategy consists of setting specific values for both the variables. Each duopolist is assumed to an article review College, have a large but a limited number of strategies, in which case there is no possibility of continuous variation of the of South Australia, action variables. The final outcome of the duopolistic game is the profit earned by each of the participants. This is determined from the courses The University of Birmingham, relevant cost and demand functions once each firm has selected its own strategy. Of South Australia (Navitas)! A key objective of the writing comparison, game theory is to determine the article of South Australia, optimal strategy for each player. The optimal strategy for a player is the one that maximises his expected pay-off.
There are two criteria of classifying duopolistic games: (i) The number of participants; and. (ii) The net outcome. Since game theory is essentially a theory of decision-making involving conflict the first criterion simply involves a counting of the number of participants with conflicting interests. Here we discuss any two-person games. The persons are like players of chess or card. In this case, there are the two duopolists, and each one is trying to outguess his rival. The second criterion allows us to a draw a distinction between zero-sum and write an article review non-zero-sum games. A zero-sum game is article summary The University of South one in which the sum of the outcomes—e.g., profits—for all the participants equals zero for every possible combination of strategies. The economic games that firms play can be either cooperative or non-cooperative. How To Write Essays Lancing! In a cooperative game, players can negotiate binding contracts that allow them to summary The University Australia (Navitas), plan join strategies.
In a non-cooperative game, negotiation and enforcement of binding contracts are not possible. In any game, however, the essay International Academy, most important aspect of article summary The University of South (Navitas), strategic decision-making is understanding one’s opponent’s point of writing discursive essays Norwich, view, and (assuming one’s opponent is article of South rational), deducing his likely responses to write an article review Ashbury College, actions. Two-person zero-sum games are competitive (non-cooperative) in nature. The reason is that if one player always loses what the other wins, there can be no room for article summary cooperation. A two-person zero-sum game can be applied to a duopolistic market in which one participant’s gain always equals the loss of the other.
In general, if I has m strategies and II has n strategies, the possible outcome of the game is given by writing Kendall, the following payoff matrix which shows what I will receive as a result of each possible combination of strategy choice by himself and by article (Navitas), II: where the a ij is I’s profit if I employs his ith strategy and II employs his jth. In case of zero-sum sum, the corresponding profit earned by II is – a ij . Duopolists adopt two approaches, viz., maximin and critical thinking The University of Birmingham minimax. I can make the summary of South (Navitas), best of the situation aiming at Ashbury, the maximum of the minimal payoffs. This decision rule is called a maximin strategy. Similarly, the best of II’s most pessimistic payoff is called II’s minimax strategy. Let us consider the summary The University of South Australia, following payoff matrix: If I employs his first strategy and II employs his second, I’s profit is 40, and II’s is – 40. If I employs his second strategy and write an article College II employs his third, I’s profit is – 10 and II’s is 10.
The duopolist’s decision problem consists of choosing an optimal strategy. I desires the outcome (40) in the first row and second column of (2), and article The University II desires the outcome (- 10) in the second row and third column. The final outcome depends upon critical thinking courses The University, the strategies of both duopolists, and neither has the power to enforce his desires. If I selects his first strategy, II might select his fourth, and the outcome would be 5 rather than 40. If II selects his third strategy, I might select his first, and the outcome I would be 20 rather than -10. The theory of games postulates behaviour patterns which allow the determination of summary Australia (Navitas), equilibrium in these situations.
The decisions of the duopolists are consistent and the equation is achieved if. If (3) holds, the strategies of I and II are respectively, called an Ashbury equilibrium pair of strategies. In example (2), suppose I employs his first strategy. If II anticipates I’s choice, I’s profit will be 5. Article! If I employed his second strategy, and how to an article review Ashbury College II anticipated his choice, his profit would be -10. II will employ his fourth strategy and his loss will be limited to 5. Every other column of (2) has a maximum greater than 5. In this case, The duopolists’ decisions are consistent, and an equilibrium is established. Neither duopolist can increase profit by summary of South Australia, changing his strategy if his opponent’s strategy remains unchanged.
An equilibrium point in terms of a payoff matrix is Business called a saddle point. Article Summary Of South Australia! However, the coincidence of maximin-minimax strategy payoffs does not always occur. There are some cases in which the payoff matrix possesses no equilibrium pair. To understand this problem, we have to introduce the concept of dominance. A dominant strategy is one that is optimal—no matter what an opponent does. How To Write Expository! In general, the ith row dominates the hth if a ij ? a hj for all j, and a ij a hj for at least one j. Article Australia! A rational duopolist will never employ a dominant strategy. If he does, no equilibrium pair will exist. However, when every player has a dominant strategy, we call the outcome of the game an equilibrium in dominant strategies. Equilibrium in dominant strategies refers to the outcome of bias, a game in which each firm is doing the best it can, regardless of what its competitors are doing. In such a game, each player’s optimal strategy can be determined without worrying about the actions of the other players.
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