In an Industry with Network Effects and Differentiated Products, It

question 272

Multiple Choice

In an industry with network effects and differentiated products, it is possible for the industry to become an oligopoly if

• A) they engage in a zero-sum game.
• B) they use a price-leadership model.
• C) they use a kinked demand curve model.
• D) a few firms reap most of the sales gains resulting from positive market feedback.

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often in group contexts, leading to uninhibited behavior.

Social Facilitation

The tendency for people to perform differently when in the presence of others, usually improving on simple tasks and doing poorly on complex tasks.

Dispositional Attribution

The tendency to attribute someone's behavior to their inherent personality traits rather than to the situations they are in.

Situational Attribution

The process of attributing behavior to external factors or circumstances.