Solution for QID #3747: The market for electronic readers consists of relatively few | StudyHelpMe

The market for electronic readers consists of relatively few firms, including Amazon, Sony, and Plastic Logic. In an interview, Walter Mossberg of the Wall Street Journal asked Rich Archuleta, CEO of Plastic Logic, what price the company would be charging for a new electronic reader that it was developing, aimed at business users. Archuleta declined to give a specific price, saying instead, "The market sets pricing. We don't set pricing." But Plastic Logic is competing in an oligopolistic industry, so shouldn't the firm, not the market, be setting the price? Explain why Archuleta made this statement.