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. Economics (deriving from the Greek words οίκος [oikos], house, and νέμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ... The Harvard University Press is a publishing house, a division of Harvard University, that is highly respected in academic publishing. ... 1973 was a common year starting on Monday. ... Wikiquote has a collection of quotations by or about: United States Wikinews has a related story: United States United States government CIA World Factbook Entry for United States House. ... Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. ... The world economy can be represented in various ways, and broken down in various ways. ...

See also

• Oligopoly