Which of the following strategies allows interdependent firms indirectly to coordinate their actions?
A) Market development
B) Harvest strategy
C) Divestment strategy
D) Price signaling
E) Market penetration

Question

Quizplus · Accepted Answer

Price signaling allows interdependent firms to indirectly coordinate their actions. This strategy involves a firm adjusting its prices to convey information to competitors about its intentions regarding output levels and market share. Competitors can then use this information to adjust their own prices and output levels accordingly, leading to a tacit coordination of actions.

Which of the Following Strategies Allows Interdependent Firms Indirectly to Coordinate