Barclays Essay

4. HONORABLE LEADERSHIP

I assertively believe regulation alone is unlikely to change collusive behavior in the market. We need to ruminate in how we can efficiently create a culture of ethical behavior within financial institutions. If the increase regulation, on its own, has altered conduct at Barclays, who have been fined for mis-selling financial products and LIBOR rigging? We need to consider the consequences of weak leadership, poor management of risks, inadequate training and relatively partial indulgent of the significances of such misconduct. The abuse by Barclays’ personnel of their positions of trust for the sake of corporate and indirect private gain was ethically corrupt behavior. It exposes weaknesses in corporate governance and

One can see the increase complexity of this market just by looking at the oligopolists demand a “kinked demand curve”. We have never encounter the demand curve that looks like this before so what gives. This demand curve is effectively composed of two different demand curves because the game playing behavior of the firms in this industry will change depending on whether the firm is implementing a price increase or price decrease. When the oligopolistic firm goes to increase its price, the rivals will not follow. They will let that one firm increases price and then they will gain the customers as buyers are driven away by the initiating firms’ higher prices. This mean for the firm is that, if it raises its price and no other producer follow suit than the initiating firm will see a large decrease in quantity demanded i.e. the demand is more elastic, when the firm attempts to increase its price. What if the firms lower its price? The rivals are aware that they could lose substantial market share, if they not follow along and lowers their prices as well. But if everyone lowers its prices, the firm which initiated the price changes will see very little change in the quantity demanded because for most part the customer stays where they