An oligopolistic reaction is a concept from economics introduced by Frederick T. Knickerbocker (Oligopolistic Reaction and Multinational Enterprise, Cambridge, MA: Harvard University Press, 1973) to explain why firms follow rivals into foreign markets. Under conditions of growth in an economy, US firms match the investments of competitors into that economy. Also called follow-the-leader behavior. Used to understand the global flows of foreign direct investments (FDI) and thereby the structure of the world economy.
Famous quotes containing the word reaction:
“Children, randomly at first, hit upon something sooner or later that is their mother’s and/or father’s Achilles’ heel, a kind of behavior that especially upsets, offends, irritates or embarrasses them. One parent dislikes name-calling, another teasing...another bathroom jokes. For the parents, this behavior my have ties back to their childhood, many have been something not allowed, forbidden, and when it appears in the child, it causes high-voltage reaction in the parent.”
—Ellen Galinsky (20th century)