An oligopoly is a state of limited competition, in which a market or industry is dominated by a small number of producers and sellers. Oligopolies can result from various forms of collusion, which reduce competition and lead to higher prices for consumers. This model is based upon a set of very precise outcomes. These are- • A few firms dominate the market • There exists a high degree of interdependence • There exists a high degree of market concentration • There exists a high degree of collusion
Literature Review Market Structure Owing to the large population there is no wonder that the Indian Telecommunication market is one of the largest in the world. India has the second largest telecommunication market after China. The largest customer base has also made Indian telecommunication network as the third largest in the world in terms of the infrastructure with the lowest tariffs. Indian telecom sector is one of the fastest growing sectors in the world with the growth rate of 12%-14% [IBEF]
Market can simply be defined as the arrangement that allows buyers and sellers to exchange various sort of goods and services. Every market consists of some essential elements like a commodity which is to be bought or sold, existence of buyers and sellers who are going to perform this activity, definite area of land where this activity is going to be performed and contact between buyers and sellers. Contact can be personal or impersonal e.g. letters, advertisement, fax etc. Markets can be found in
this assignment are Perodua and Toyota. The market structure of both of the companies can be classified as the oligopoly. One of the characteristics of oligopoly is there are only a few sellers in the market. As an illustration, Proton is one of the local automobile manufacturers while Honda and Nissan are foreign automobile manufacturers. Since there are only a few sellers in this market, the fewer firms dominate and control all or most of the market. Additionally, Perodua and Toyota are sold homogeneous
its prices such that they are below the prices of its competitors. An Oligopoly is a market structure where the market is dominated by a few firms. Unlike the theoretical perfect competition market, Oligopolies exist in real life. A market structure that is dominated by two companies is known as a duopoly. An example of an oligopoly is the soft drinks market that is dominated by Coca-Cola and Pepsi (Zheng, 2013). Oligopolies can be categorized according to the type of product they produce. The
buyer and seller. Market structure is the organizational characteristics that influence the nature of the market and price competition in the market. There are several types of Market model, such as 1. Perfect competition market 2. Monopolistic competition market 3. Oligopoly market 4. Pure monopoly market Types OF Market Model 1. Perfect competition
there is a market structure. The market structure can affect the price of a firm to charge on their products in the industry. The market structure can be defined as the number of firms that produce identical goods and services in the market. In general, the market structure can be categorized into four: perfect competition, monopoly, oligopoly and monopolistic
Classification of markets (market structure) and its practical importance. Relate it to the world of real competition with illustrative examples.. Market structure is the characteristics of the market. The major characteristics in describing the market structures are the nature of competition and the mode of pricing in the market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure will influence
Driving School into consideration we can see that the main internal responsibilities are consumer protection, Health and Safety and equal opportunities. Whereas the main external responsibility is the environment. ASSESSMENT 3: The Market Environment AC3.1: Explain how market structures determine the pricing and output decisions of business A lot of businesses face competition because there are a lot of similar company's out there selling the same products and services, so they have to be competitive
academic definition of duopoly is an oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market (Wikipedia.org). If we look to the Peruvian telecommunication sector, Telefónica-Movistar and Claro can be considered an example of Oligopoly, even when there are other companies like Nextel. That is because between these two they have more than the 90% of the market and Nextel is focused in other kind of