Oligopolní konkurence nadnárodních obchodních řetězců v podmínkách integrující se evropy
Oligopoly Competition of Multinational Food Business Chains in Conditions of Integrating Europe

Summary/Abstract: We can define oligopoly as a market model type of imperfect competition, which is characterized by a small number of companies in the sector and by a relatively high degree of interdependence of their decisions. If the oligopolistic firm thinks about the change of price (or amount) of its production, it will take into account not only the reaction of prospective purchasers, but also the response of competing firms. The oligopolistic firm must take into account how, as a result of their choice, the competitor changes the price (quantity) of its output. Reactions of that firm are affected not only by what competitors are doing now, but also what the firm is expecting of them. Firms in oligopoly react not only with each other to change the prices of production, but also to change their quantity, quality, advertising, etc. for each of the competing firms. The Sweezy´s oligopoly model assumes that firms produce a differentiated product and the firm expects that a competitor will not respond to an increase in its market price, but will respond to reducing its market price by decreasing the price either. The goal of this paper is to highlight the behaviour of oligopolistic firms in terms of rigid prices of food business chains. This year the food business chains expand the offer of products sold under its own brand. They expect the higher demand for goods with their own brand which are cheaper than the branded goods.

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