market structure analysis on roku
•Write about the firm that sells the product you chose for your demand analysis
–Give the general characteristics of the market
•Type of product (homogeneous or differentiated
•Approximate number of firms in the market
–Focus on leading firms selling close substitutes
•Barriers to entry
–Based on these characteristics, what type of market is this?
•Competitive
•Monopolistic competition
•Monopoly
Oligopoly
•Predict what will happen next to the firm in this market
•Sweezy—prices and quantities sold very stable over many years
•Cournot
–Lots of strategic competition
•The firm is well aware of who are it’s main competitors
•Strategies include emphasis on product differentiation
–Lots of advertising
–Many unique product features
–Frequent upgrades
•Bertrand
–Strategies depend only on price competition
–Prices keep getting lower and lower
–Profits equal zero
•Stackelberg
–Price leader
Price followers
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