Harris Duopoly

For all the questions, Coles and Woolworths illustrate significant knowledge of the market, indicating that they are a present duopoly. Their selling power is shown through the knowledge of identifying the lowest price. The duopoly had two selling statements concerning competitors in which the average answer for both statements was higher that the local retailers. This can be justified through the buyer’s knowledge of where to purchase the cheapest products, having the highest average response of 4.23. However, the local retailers are not far behind, trying to remain price competitive by having great awareness of the prices that consumers are expecting by monitoring the prices selected by Coles and Woolworths. While IGA has an average answer
The goal of this essay was investigated when applying economics models to the behaviours of Coles and Woolworths dominating the market and discussing implications through the four main assumptions of a duopoly: highly/slightly differentiated products, few sellers, interdependence and barriers to entry/exit exist. This has shown to cause significant price making ability over the local retails, also presented through the barriers of entry that exist in the market that permits the retailers from setting their own prices. Furthermore, the knowledge of the market that the duopoly obtains is significantly higher than the local retailers, which attributes to consumers purchasing at Coles and Woolworths thus forcing local retailers to lower prices to remain competitive. Moreover, the brand loyalty is perceived to be higher in the ‘big two’ than in the local retailers which contributes to Coles and Woolworths having more price making ability as consumers will purchase their fruits and vegetables regardless of price changes. This is supported through the interviews conducted with local retailers illustrating high awareness to price changes forcing them to adapt to price changes or differentiate their products with different
It was presumed that IGA, Harris Farm and Mario’s Market would attempt to match the lower prices set by Coles and Woolworths however was surprise by the local retailer’s pricing strategies of differentiating their fruit and vegetables from those offered at the duopoly by increasing