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Baumol and Blinder Argue That Oligopolies Are Interdependent Firms

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Essay

Baumol and Blinder argue that oligopolies are interdependent firms.What do they mean by this?
Give three examples of the types of interdependence which might occur.


Definitions:

Action Stage

A phase in the process of change where individuals actively implement behaviors to achieve a desired outcome.

Affective Discrepancy

A psychological term referring to a gap or difference between felt emotions and expressed emotions.

Behavioral Discrepancy

The divergence or inconsistency between expressed behaviors and expected or normative behaviors.

Cognitive Discrepancy

A state of psychological discomfort caused by holding two conflicting thoughts, beliefs, attitudes, or values at the same time.

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