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An oligopolistic reaction is a concept from economics introduced by Frederick T. Knickerbocker 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.
See also
References
- Knickerbocker, Frederick T. (1973). Oligopolistic reaction and multinational enterprise. Internet Archive. Boston : Division of Research, Graduate School of Business Administration, Harvard University. ISBN 978-0-87584-102-1.
- Knickerbocker, Frederick T. (Spring 1973). "Oligopolistic reaction and multinational enterprise". The International Executive.
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