MODELS OF PRICE COMPETITION ON OLIGOPOLY MARKET AND THEIR APPLICABILITY

The paper analyzes theory and models of price competition on oligopoly market. Aims of the paper are: for the microeconomic theory of price competition in oligopoly to connect with the real events in the real economic environment; and to consider the importance of alternative business strategies which are recommended by microeconomic theory of enterprise behavior. The paper acknowledges the hypothesis that models of oligopoly, even besides important generalizations and insubstantialities of certain assumptions, are useful as an approach in the development of real business strategies.

Key words: oligopoly, price competition, product differentiation, alternative strategies.

JEL Classification: D43, L13