Brands and Advertising and Monopolistic Competition(2 pages)
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Brands and Advertising and Monopolistic Competition
This lecture helped us understand monopolistic competition better and also talked about how companies will differentiate their products by brands and persuasive advertising.
- Lecture number:
- Lecture Note
- University of Oklahoma
- Econ 1123 - Princ. of Econ-Micro
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ECON 1123 1st Edition Lecture 21 Outline From Previous Lecture (Lecture 20) I. Antitrust Policy II. Measuring the Extent of monopoly power III. Contestable Market IV. Monopolistic Competition Outline Lecture 21 I. Characteristics of Monopolistic Competition II. Brands III. Persuasive Advertising IV. Comparison between monopolistic competitive firms and perfectly competitive firms Lecture 21 Notes I. Characteristics of Monopolistic Competition 1) Many small firms which are largely independent of competitors price changes 2) Entry or Exit is relatively low in cost 3) Product differentiation: achieved by: better location, branded products II. Brands Brands effectively are promises of performance Financial times- estimated value of brands: #1 google- $90 Billion just for the name #2 General Electric- $70 Billion *8 out of top 10 brands in the world are American Example of the power of brands: People will pay more for the exact same car if it is a Toyota Brands convey market power (some control over price) Brands brand themselves by using clever packing, and advertising III. Persuasive Advertising These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.
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