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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Anna Safronova
Pricing and Nonpricing Strategies in Oligopoly
2018
In this paper optimal pricing and non-price strategies will be discussed. The logic of the paper is the following. Firstly, there are definitions of price and non-price competition and the overview of some of the existing strategies. There will be shown that the choice of the right price and non-price strategy is far from trivial question; and depends on numerous factors.

Secondly, the question will be narrowed to the choice of price and advertising level, which can signal consumers higher quality. Through review of the most fundamental articles in the field it will be shown why the problem of quality determination is so acute; how the signaling model works; and how price and non-price activities can be chosen to show quality.

Finally, there is a model constructed to show how one firm in the duopoly market structure can use price to signal that its quality has been improved. More specifically, it will be shown how the firms’ cost structure and consumers’ transaction costs influence the firm’s opportunity to signal its higher quality.

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