Oligopoly: Economics and Market Essay Example
TABLE OF CONTENT
* Executive Summary * Oligopoly * Definition * Oligopolistic competition * Characteristics of Oligopoly * Similarities & Differences between Monopoly & Oligopoly * Effects of Oligopolistic Competition * Models Defining Oligopoly * Dominant Firm Model * Cournot – nash Model * Bertrand Model * Kinked Demand Curve * Game Theory * Price and Non – Price Competition * Price Leadership * Worldwide examples of Oligopoly * Australia * Canada * United Kingdom * United States * Others * Examples of Oligopoly in Pakistan * Details Analysis of Automobile industry of Pakistan * Conclusion * References
EXECUTIVE SUMMARY
Oligopoly is a market form, in which few sellers dominate the complete market. Oligopoly is slightly different from monopoly, in monopoly market is ruled by a single seller and consumers or buyers have no other choice, where as in oligopoly consumer have choice but very few, usually a seller creates its brand value and gain customer loyalty.
In oligopolistic competitions possess certain obvious characteristics the cartel can set prices, entry and exit is difficult for a seller from the market, each firm influence the other firm, oligopolies can also maintain long run profits as the entry of new firms is difficult.
The most distinctive feature of oligopoly is interdependence as each firm is large enough that its action will affect the market.
Oligopoly has certain negative and positive effects on the consumer and market. Barrier on the entry of new products and seller reduces choice and variety for customer and less investment too, other negative effect is the influence of sellers on the price which is a nightmare for consumers. On the other hand the positive effects are the competition among the sellers that gives better product, and oligopolists are main contributors of national income.
There are different models that help
* Executive Summary * Oligopoly * Definition * Oligopolistic competition * Characteristics of Oligopoly * Similarities & Differences between Monopoly & Oligopoly * Effects of Oligopolistic Competition * Models Defining Oligopoly * Dominant Firm Model * Cournot – nash Model * Bertrand Model * Kinked Demand Curve * Game Theory * Price and Non – Price Competition * Price Leadership * Worldwide examples of Oligopoly * Australia * Canada * United Kingdom * United States * Others * Examples of Oligopoly in Pakistan * Details Analysis of Automobile industry of Pakistan * Conclusion * References
EXECUTIVE SUMMARY
Oligopoly is a market form, in which few sellers dominate the complete market. Oligopoly is slightly different from monopoly, in monopoly market is ruled by a single seller and consumers or buyers have no other choice, where as in oligopoly consumer have choice but very few, usually a seller creates its brand value and gain customer loyalty.
In oligopolistic competitions possess certain obvious characteristics the cartel can set prices, entry and exit is difficult for a seller from the market, each firm influence the other firm, oligopolies can also maintain long run profits as the entry of new firms is difficult.
The most distinctive feature of oligopoly is interdependence as each firm is large enough that its action will affect the market.
Oligopoly has certain negative and positive effects on the consumer and market. Barrier on the entry of new products and seller reduces choice and variety for customer and less investment too, other negative effect is the influence of sellers on the price which is a nightmare for consumers. On the other hand the positive effects are the competition among the sellers that gives better product, and oligopolists are main contributors of national income.
There are different models that help