ECO404 GDB 1 Solution and discussion
Total Marks 5
Starting Date Tuesday, January 21, 2020
Closing Date Monday, January 27, 2020
Question Title GDB
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?
They are operating in Oligopoly market structure.
For mutual gain firms should play sequential-move game by this they will act accordingly so they will get to know each other strategy and can counter for better.
Muhammad Sheraz last edited by
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