Thesis 1: From an industrial organization point of view, the stand-up comedy market structure in the 1980s can be characterized as an oligopoly
“The structure of a market, thus how a market is functioning, “ is the concept behind the industrial organization theory”. The Industrial Organization (IO) theory is about, how a structure of a market has an influence on the strategy and decision making of a company.” 1 The theory therefore focusses on the market wherein the company operates and links the decisions of the company to the market. In the economic theory of industrial organisation, an industry can be defined according to several different criteria.2 According to Throsby, there are three characteristics of a market in analysing the stand-up comedian industry. We refer to the market concentration, barriers to entry and exit and the degree of competition in the stand-up comedian market. So if you take these factors into account you can analyse the stand-up comedian market structure in the 1980s. The 80s was a prosperous time for stand-up comedians. Because of the dissemination of comedy clubs all kinds of comedians good or bad could participate in this market so the entry barrier was low because comedians were in high demand the competition rises automatically.
An oligopoly is one of the structures that occur in an imperfectly competitive market. It’s a situation where a market or industry and its supply of goods is dominated by a small number of firms. Hence a small amount of buyers and a few companies who sell the product is typical for an oligopolistic industry. This thesis can be undermined, because during the 80s there was no such thing as an oligopoly from an industrial organization point of view of the stand-up comedian market. The opening of new comedy clubs was booming all across the States. Many buyers, the comedy clubs, were present and eager to buy the goods, the stand-up comedian performances.