RWE: Market structure
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36 Terms
Who (monopoly)
what (monopoly)
Has 90% of market share in search engine market
where (monopoly)
globally
when (monopoly)
2020’s
why (monopoly)
Due to high barriers to entry, other firms are unable to enter this market
how (monopoly)
They have created brand loyalty by paying Apple and Samsung approx 25 billion dollars per year to ensure Google is the default search engine on these phones.
who (natural monopoly)
skanetrafiken
what (natural monopoly)
It’s considered a natural monopoly as it holds 100% control over the regional public transport
where (natural monopoly)
skane, sweden
when (natural monopoly)
2000’s
why (natural monopoly)
Operating as a natural monopoly, it coordinates a single network to avoid the wasteful cost of building overlapping train tracks and bus stops.
how (natural monopoly)
High fixed costs for infrastructure create massive barriers to entry
who (collusive oligopoly)
11 yoghurt firms (Laita, Alsace Lait, etc)
what (collusive oligopoly)
Eleven firms face 193 million euros fine due to being in a cartel
when (collusive)
2015
where (collusive)
france
why (collusive)
These firms were colluding by fixing a price for yogurt in supermarkets
how (collusive)
They met up for smoking, had burner phones
who (non collusive)
Eli Lilly, Novo Nordisk, Sanofi
what (non collusive)
Controlled near 90% of the insulin market
where (non collusive)
USA
when (non collusive)
2010-2015
why (non collusive)
Sanofi was the ‘dominant leader’. As it increased its price first, the other two firms followed.
how (non collusive)
High barriers to entry as insulin has high production costs, filed patents on their productions.
who (Monopolistic Competition)
pizza shop owners
what (Monopolistic Competition)
Around 30 shops competing for the same customers by offering slightly differentiated pizzas.
when (Monopolistic Competition)
still happening
where (Monopolistic Competition)
helsingborg sweden
why (Monopolistic Competition)
Low barriers to entry allow many small businesses to start up, preventing any single shop from owning the entire market.
how (Monopolistic Competition)
They use product differentiation (unique recipes, specific locations, or premium ingredients) to act as "price-makers," allowing them to charge different prices (e.g., 115 SEK vs 175 SEK) without losing all their customers to a cheaper rival.
who (Perfect Competition)
strawberry sellers
what (Perfect Competition)
Strawberries are sold at the same prices across all stores and strawberry stands during the summer season
where (Perfect Competition)
helsingborg sweden
when (Perfect Competition)
june-august
why (Perfect Competition)
Very low barriers to entry, homogeneous products coming from the same crop, multiple sellers
how (Perfect Competition)
Sellers are price takers. The market price is usually 100 SEK per liter. If a seller tries to sell it for more than the market price, consumers go to another stall.