“ARE YOU SURE THAT GOODS ARE THE CHEAPEST?”

A Trick Of Inverse-Conception Of Bad Companies There is a auto company fixing cars. (suppose, it is ‘A’ store) There is a auto company fixing cars. (suppose, it is ‘A’ store) and it posted an advertising sign at its entrance. it said that "if there is anyone to know some companies that are selling cheaper tires than here, we will pay back money three times of the balance." and it posted an advertising sign at its entrance. it said that "if there is anyone to know some companies that are selling cheaper tires than here, we will pay back money three times of the balance."

What Is An Oligopoly? An oligopoly is a market dominated by a few large suppliers. An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. that is, a large percent of the market is taken up by the leading firms. The degree of market concentration is very high. that is, a large percent of the market is taken up by the leading firms. Firms within an oligopoly produce branded products. Firms within an oligopoly produce branded products. advertising and marketing is an important feature of competition within such markets. and there are also barriers to entry. and leading firms know well each other because market is small. advertising and marketing is an important feature of competition within such markets. and there are also barriers to entry. and leading firms know well each other because market is small.

They were doing Silent Colluding Behavior. ( 암묵적 담합행위 )

The other competitive firms did not have any reactions in spite of A store's behavior. There must be something secret! The other competitive firms did not have any reactions in spite of A store's behavior. There must be something secret!

Why ‘A’ store's ad is a fraud? A store: 72,000 won A store: 72,000 won B store: 70,000 won B store: 70,000 won (a competitive store of A store ) (a competitive store of A store ) *In case of B store’s price reducing because of A store’s ad. *In case of B store’s price reducing because of A store’s ad. What tires will you buy, A store’s or B store’s?

In this case, which store have a benefit for competitive pricing? ( 가격인하경쟁 ) Both stores fail! Both stores fail!

나쁜 누이 좋고 나쁜 매부 좋고 I expected that A store's ad make an advantage to consumers by stirring up competitive pricing among oligopoly stores, but actually, it was not. I expected that A store's ad make an advantage to consumers by stirring up competitive pricing among oligopoly stores, but actually, it was not. The ad strategy of A store was a help to making a silent colluding behavior instead of leading a competitive pricing. The ad strategy of A store was a help to making a silent colluding behavior instead of leading a competitive pricing.

Three-Perpetual Lies. 1.a old man says, "I want to die quickly!" "I want to die quickly!" 2.a virgin says, "I will never get married to anyone!“ "I will never get married to anyone!“ 3.a dealer says, "I'm selling goods suffering my damage." "I'm selling goods suffering my damage." REFERENCE A GREAT ECONOMICS REFERENCE A GREAT ECONOMICS WRITTEN BY KIM DUK-SU WRITTEN BY KIM DUK-SU