economie - non-competitive markets part 1

pure monopoly

a market type with only 1 supplier

near monopoly

a market type with different suppliers but were one supplier controls/dominates the market

Farys has a tap water monopoly in Ghent

= legal monopoly

Garbage/waste collection monopoly in Limburg

= natural monopoly

A monopoly in bus/tram/metro transport in Flanders

= legal monopoly

technical monopoly

technical knowledge, knowhow (patent)

natural monopoly

economies of scale, control over production factors

legal/state monopoly

legal authorization (government)

strategic monopoly

competitor elimination (takeover, merger)

oligopoly

a type of market with a few suppliers that dominate the market

homogeneous oligopoly

homogeneous product ex. natural gas market

heterogeneous oligopoly

heterogeneous product ex. commercial banking market

price leader

a supplier in the market who has a relatively large influence on the pricing policies of the other suppliers

cartel

an agreement between companies designed to reduce competition between them. it’s usually not desired as it thwarts the principle of competition

price cartel

an agreement among firms not to sell products below a certain price

quantity or production cartel

an agreement between companies on the quantity of product each participant produces

rayon cartel

an agreement in which suppliers divide the sales market geographically

competition policy

seeks to ensure healthy, open and effective competition. this promotes the competitiveness of enterprises, offers consumer a rich variety of diverse quality products at competitive prices, and fosters innovation

monopolistic competition

market form with many suppliers, each offering a similar yet different product

examples of monopolistic competition

small retail (incl. horeca) & basic food products