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ECO404 Managerial Economics GDB Fall 2019 Solution & Discussion

The Case:

Smartphones market in Pakistan is flourishing rapidly. Young people of Pakistan are mainly the users of smartphones. Samsung iPhone, QMobile, Nokia, Blackberry, HTC and OPPO etc. are primarily the smartphones sellers in Pakistan. Due to rapid development in technology smartphones prices have been declined. Smartphones companies know very well how to capture the market share and they have close eye to the prices of other companies. Leading global smartphone brand, OPPO has become number one in terms of sales volume in the Pakistani market. Among all other mobiles, smartphone shipment was 0.7 million units in the month of July 2019 and this share of smartphones is 36%.  OPPO market share is 25% and Samsung share is 19%.


Being a student of economics identify the market structure of smartphones and also explain which type of game, smartphone sellers have to play for mutual gain?

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The market structure of smartphones is oligopoly, since the market is dominated by a small number of strategically interdependent companies. As Samsung and OPPO have an important market share, so they should opt for the cooperative game, this will help them increase their market share.

When there are more than two companies, therefore, for mutual benefit, they should play cooperative games that should be paid games of matrix n. The price and market strategy depend on the other company. This will increase your earnings

thanks, its very help full for me... Jazaka ALLHA Khair


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