Tuesday, May 15, 2012

Imperfect Competition

Imperfect Competition

Imperfect Competition

Economics Revision Article Series

Authors

Between monopoly and perfect competition lies imperfect competition in the market.
 
Duopoly is situation where two sellers are in the market.
 
Oligopoly is a market dominated by few firms.
 
Oligopolies occur due to legal restrictions like quotas, patents which are to be licensed and product differentation.
 
Some characterization of Oligopoply
 
Collusive oligopoly
Dominant firm oligopoly
 
Monopolistics competition
 
There are many firms but they sell dissimilar products.
 
 
 

References

 

Paul Samuelson and William D. Nordhaus, Economics, 13th Edition,  McGraw-Hill, 1989

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