Two universities located within 30 miles of each other agree to allocate their customers so as to help them both.The two schools draw a line down a map and each university agrees to accept students only on their side of the line.What type of horizontal cooperative strategy does this represent?
A)Market division
B)Refusal to deal
C)Reciprocal dealing
D)Joint venture

Question

Quizplus · Accepted Answer

Market division is a horizontal cooperative strategy where companies divide a market geographically, allowing them to avoid direct competition and potentially increase their market share in their respective regions. In this scenario, the two universities are practicing market division by agreeing to only accept students on their side of the line, which will help them both by reducing competition for students in their immediate area.

Two Universities Located Within 30 Miles of Each Other Agree