Question

List three industries where cooperation among competitors is most likely and explain why

Answer 1

Cooperation refers to an act of cooperation among the competitors; businesses who engage in both cooperation and competition are said to be in competition. In Oligopoly market cooperating to raise profits through obtaining the monopoly outcome, or competing to try to gain an advantage over competitors is the key to success.

-- The music entertainment industry such as Sony, BMG, Universal Music Group, Warner and EMI Group are competitors however cooperate to benefit as a whole by increasing the prices

-- Automobile manufacturing industry with the leading auto manufacturers in the U.S. being GMC, Ford (F), and Chrysler cooperates for profit maximization

-- Major airlines such as United Airlines and American Airlines dominate the flight industry; but smaller airlines would operate within the space also, offering unique services as Southwest does or offering special flights in the holiday niche, providing special entertainment and guest singers on specific flights. It is needed because already-existing smaller businesses also have to operate in the market dominated by a few competitors.