EDEXCEL IAL Topical Past Paper Unit 3
3.3.5 Oligopoly
section A
Section b
WEC13/01/May 2024
In July 2023 the Competition and Markets Authority fined Leicester City Football Club £880000 for colluding with JD Sports. The club was found guilty of price fixing and restricting the selling of Leicester City‐branded clothing in the UK.
Evaluate the likely effects of collusion on businesses and consumers in an industry of your choice.
Illustrate your answer with reference to game theory. [20 marks]
WEC13/01/May 2022
The Indian premium smartphone industry is dominated by three firms: Apple, Samsung and OnePlus. These firms compete mainly using non-price competition.
Evaluate the use of non-price and price competition in oligopolistic markets.
Illustrate your answer with an appropriate diagram(s). [20 marks]
WEC13/01/Jan 2022
In 2020 three pharmaceutical firms Lexon, King Pharmaceuticals Ltd and Alissa Healthcare Research Ltd, were found to have illegally shared information in order to keep prices artificially high. Each firm was fined £1.2 million for this collusion by the
UK competition authorities.
Evaluate the possible benefits of collusive behaviour between firms.
Use a simple game theory model in your answer. [20 marks]