Oligopolistic reaction
From Wikipedia, the free encyclopedia
 |
This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (December 2009) |
 |
This article is an orphan, as few or no other articles link to it. Please introduce links to this page from related articles; suggestions may be available. (November 2006) |
An oligopolistic reaction is a concept from economics introduced by Frederick T. Knickerbocker (Oligopolistic Reaction and Multinational Enterprise, Cambridge, MA: Harvard University Press, 1973) to explain why firms follow rivals into foreign markets. Under conditions of growth in an economy, US firms match the investments of competitors into that economy. Also called follow-the-leader behavior. Used to understand the global flows of foreign direct investments (FDI) and thereby the structure of the world economy.
