Please work on the peer comments: Replies for these comments
1) I enjoyed learning more about the various advertising strategies that companies partake in. One of the most important features that a company should possess within a monopolistically competitive market is product differentiation (Miller, 581). This helps customers distinguish one product from another. A company that differentiates their products has a leg up over the competition majority of the time. There are three methods of advertising, which include direct marketing, mass marketing, and interactive marketing. The graph that illustrates the U.S. advertising expenses listed the highest percentage of advertising spending is on direct marketing. It is over 50% of advertising spending. I was a little surprised that there was not more spending on mass marketing because that particular type of advertising can have a huge impact on customers as well.
Miller, Roger L. Economics Today. Pearson Education, 2014.
2) The Lemon’s Problem was intriguing to me. It was derived from the concept of asymmetric information through example of defective used cars, which are known as lemons in the marketplace. Credence goods such as pharmaceuticals, health care, and professional services are vulnerable to the lemons problem because buyers and sellers don’t have enough information required to make informed decisions regarding a transaction. The seller knows the true value of the product, but the potential buyer typically does not have this knowledge.
3) Chapter 25: The types of marketing and how companies exist in a monopolistic competitive environment. Now I can easily identify a monopolistic competitor in any given field with the help of this chapter. One notable point is to know how demand curve acts for both prefect and monopolistic competitor.
Chap 26: Existence of companies as a syndicate where there is no chance of monopoly arising oligopoly exists. This market structure is quite common in most of the markets. I understood how oligopoly raise in an economy. Prisoners dilemma payoff matrix applied for price war between companies is a interesting topic
Chapter 27: I Enjoyed learning more about natural monopolies. And the types of regulations that government keep in place. I got a chance to learn about forms of regulators that serves as a base to a good functioning economy. That are SEC, FAA, FCC and FED. Net Neutrality is widely discussed where regulations are kept on Internet service providers to regulate the ad revenue economy by big monopoly e commerce giants and other companies’ region to region, I undermined the costs of regulation before reading this chapter but I felt this concept helps to see the big picture. I also liked reading all the antitrust laws on trade from US government.
Please work on the below chapters aswell
After reading chapters 28, 32, and 33, please share your thoughts regarding the material. This may include:
- Questions you may have regarding information covered in the chapters
- Information you found interesting
- Your opinion regarding the information