According to the article Mixed) Strategy in Oligopoly Pricing: Evidence from Gas

Question

According to the article Mixed) Strategy in Oligopoly Pricing: Evidence from Gasoline Price Cycles Before and Under a Timing Regulation.

The author states that "since price rigidity exists in many industries, the results suggest that the idea of reaction based on short-run price commitment may be applicable in many other settings as well." Identify at least one other setting in which this approach would work well. Why do you think it would work? Conversely, identify one setting where it would not be successful. Explain.

Explanation / Answer

As per our suggestion price is the major issue in each and every company or in an industry that depend upon the short run and long run concept.

If the price should be at reasonable rate it definitely work and this will help us to achive the goal efficiently and effectively.

Also the main thing about price for being successful is the quality and the quantity that totally depend on it and this will lead to bring economic growth.

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