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:
“Christianity was only a very strong and singularly well-timed Salvation Army movement that happened to receive help from an unusual and highly dramatic incident. It was a Puritan reaction in an age when, no doubt, a Puritan reaction was much wanted; but like all sudden violent reactions, it soon wanted reacting against.”
—Samuel Butler (1835–1902)