The following discussion
major analog chip companies have tiptoed around one another’s product lines, helping keep profit margins high. Each company established its strength decades ago, making it easy to extend existing product families and deepen relations with longtime customers. “We chip away a little at each others’ specialties,” says Jerald Fishman, chief executive of Analog Devices. “But there isn’t a lot of direct competition.” Discuss how the price elasticity of demand influences the pricing strategies of Linear Technology Corp. What market model best describes this industry at present? Explain. How do you expect the market structure to evolve in the long run? Explain. Include two scholarly references.