Oligopolistic reaction
From Wikipedia, the free encyclopedia
An oligopolistic reaction is a concept from economics introduced by Frederick T. Knickerbocker to explain why firms follow rivals into foreign markets.[1][2] 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.
