Concept of Administered-Pricing | Oligopoly | Economics

The administered-pricing doctrine employs either of two major theories to explain how oligopolists set prices. There are known as cost-plus pricing and target-return pricing. Cost-plus pricing: Perhaps the most widely accepted method in oligopoly industries like automobiles or newspapers or steel or even aluminium is cost-plus pricing or full-cost pricing. It is a method used by firms to produce goods [...]