When Are Competitors Most Likely to React to Price Changes

question 113

Essay

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

---

Definitions:

Bailee

A person or entity in temporary possession of property belonging to another, with the responsibility of care and return.

Bailor

The owner of a chattel who delivers possession of the chattel to another in a bailment.

Vicarious Performance

A performance of a contract by a third party, where the contracting party remains liable for the performance.

Licensed Mechanic

A technician who has obtained official authorization or certification to perform mechanical repairs and maintenance on various types of machinery, especially vehicles.