Oligopoly

Running Head : OLIGOPOLY[Writer s Name][Name of Institution]When a small number of companies hulk the grocery store or the whole industry , this model is called oligopoly . ordinarily there argon several large players in an oligopolistic foodstuff , which produce similar or slightly differentiated product and are dependent on each other in terms of pricing and disputation . Besides , there are entry barriers for new players . Such industries as prompt phones and mobile connection providers , automobiles and aircrafts , cigars and cigarettes , computer chips and so on , are the examples of sophisticated oligopoliesThe main difference of oligopoly from all the other types of imperfect competition is strong interdependence of the companies operating in the food market . At that , the companies in oligopolistic markets are not provided competitors , but similarly hidden partners , because due to small number of sellers a company-oligopolist bottom of the inning plan own culture and market strategy only taking into account behavior or strategies of its rivals Specialists define cardinal types of oligopolistic markets : with standard or differentiated productCompetition (especially non price forms of it ) in oligopolistic market is quite fierce , and frequently oligopolists have a mark to join the efforts and collude in to dominate the market and compulsive up own pricing policies . In such gaffe companies form their certain strategy to maximise profits unneurotic .

Advertising plays a crucial role in oligopolistic market : it informs the customers about the products and its advantages , but sometimes overload of advertisement stick out be confusing for the customersThere are positive and negative personal effects of oligopoly on economic development . On the one hired hand , oligopoly is an antipode of monopoly and can serve to promote innovations , .research , development and technological draw close , but on the other hand , oligopoly has such obstacles for the development of pure competition as possible inability to maximize .productive or allocative efficiency , conspiratorial pricing and ignoring interests of customers (McConnell Brue , 1985 482ReferencesMcconnel , C .R Brue S .L (2004 ) Economics : Principles , Problems , and Policies . 16 ed . N .Y : McGraw-HillPAGEPAGE 2...If you want to define a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper