Monopoly
Monopoly
Monopoly broad game deals with fast property games which require organisational concepts to win the market. The broad game focus on being the single seller of the fast properly games into the market. The broad game pursues to control the demand, pricing and supply decisions and this cause setting of prices in a way that it maximised the profits earned. Being a monopoly, the broad game charges prices of the property games differently to various consumers. This mechanism is regarded as price discrimination. The broad game can apply the concept of Robinson “Price discrimination is charging different prices for the same product or same price for the differentiated product” (Armstrong 579). Broad games can use this industrial organisational concept to change the prices of the game to different players through product differentiation. This approach entails differentiating various types of games played by the customers and attaching unique price of each game.
Price discrimination can reflect the broad game changing the prices of various games for different customers based on their ability to pay for the games. This strategy can be used by the broad game as a monopoly to achieve pricing power of fast property games and also captured the entire market. Broad games can use various degree which includes first-degree price discrimination where the broad game can charge a maximum price for every buyer willing to pay for the fast-property game and this would enhance the maximum exploitation of the customer (Ben-Shahar 396). Second-degree price discrimination can apply when broad games differentiate buyers into various groups depending on their ability and willingness to pay for the fast-property games.
The bargaining power is an industrial-organisational concept which can be used by broad games as an illuminating concept to generate surplus value. The bargaining power reveals the subjective economic value as the price cannot be spoken abstractly unless expressed through the customer’s choice. Bargaining power reveals the ability of broad games and the customers to exert pressure and influence each other. Bargaining power can be used to create a competitive advantage in the market. The customers can exert pressure to demand high-quality products as well as bettering the services provides to the fast property games. Before using the bargaining power, the broad games should conduct a market analysis of the customers for instance methods of winning such as being left as the only player after every person goes bankrupt. Another approach that can be used includes collecting properties and charging the properties different prices for rent and prices of building houses.
Entry deterrence is a strategy that broad games can use as entry model into the gaming industry. The strategy of deterrence explains the monopoly power of the gaming which includes attaining a dominant position by arriving into the market as the only natural monopoly. The aspect of natural monopoly can be achieved when all the gamer goes bankrupt, thus acting as a barrier for entry of other gamers into the market (Calzada 1233). The entry deterrence separates the incumbent actions to entry into the market and further creates barriers of entry. For a player to engage in the play, they need to show the deed card which acts as entry deterrence to the game before rolling the dice. If the player has loans, his property will be auctioned to recover the money thus creating a monopoly for the game.
Works Cited
Armstrong, Mark, and John Vickers. “Competitive Price Discrimination.” Rand Journal of Economics, 2001, 579-605.
Ben-Shahar, Omri. “A Bargaining Power Theory of Default Rules.” Colum. L. Rev. vol. 109, 2009, 396.
Calzada, Joan, and Tommaso M. Valletti. “Network Competition And Entry Deterrence.” The Economic Journal, vol. 118, no. 531, 2008, 1223-1244.
