Market structure

Features of market structures

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28.11.2020

Market structure - Wikipedia

https://en.wikipedia.org/wiki/Market_structure

3/4

Karl Marx

Quick Reference to Basic Market Structures

Market

Structure

Seller

Entry &

Exit

Barriers

Nature of

product

Number

of

sellers

Number

of

buyers

Price

Perfect

Competition

No

Homogenous

Many

Many

Uniform

price as

their price

takers

Monopolistic

competition

No

Closely

related but

differentiated

Many

Many

Partial

control over

price

Monopoly

Yes

Differentiated

(No

Substitute)

One

Many

Price Maker

Duopoly

Yes

Homogenous

or

Differentiated

Two

Many

Price rigidity

due to price

war

Oligopoly

Yes

Homogenous

or

Differentiated

Few

Many

Price rigidity

due to price

war

Monopsony

No

Homogenous

or

Differentiated

Many

One

Price taker

(as there is

only one

buyer)

Oligopsony

No

Homogenous

or

Differentiated

Many

Few

Price Taker

The correct sequence of the market structure from most to least

competitive  is  perfect  competition,  imperfect  competition,

oligopoly, and pure monopoly.

The main criteria by which one can distinguish between different

market  structures  are:  the  number  and  size  of  firms  and

consumers  in  the  market,  the  type  of  goods  and  services  being

traded,  and  the  degree  to  which  information  can  flow  freely.  In

today's  time,  Karl  Marx's  theory  about  political  influence  on

market  makes  sense  as  firms  and  industry  are  affected  strongly

by  the  regulation,  taxes,  tariffs,  patents  imposed  by  the

government.  These  affect  the  barriers  to  entry  and  exit  for  the

firms in the market.

Industrial organization

Microeconomics

Economics

Herfindahl index

Structure-conduct-performance paradigm

See also

References

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28.11.2020

Market structure - Wikipedia

https://en.wikipedia.org/wiki/Market_structure

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1. Kenton, Will. 

"Karl Marx" (https://www.investopedia.com/terms/k/karl-marx.asp)

. Investopedia.

Retrieved 2020-11-05.

2. Mirman, Leonard J.; Salgueiro, Egas; Santugini, Marc (2015-09-08). 

"Learning in a Perfectly

Competitive Market" (https://papers.ssrn.com/abstract=2501419)

. Rochester, NY.

3. Bykadorov, I.A., Kokovin, S.G. & Zhelobod’ko, E.V. Product diversity in a vertical distribution

channel under monopolistic competition. Autom Remote Control 75, 1503–1524 (2014).

https://doi-org.ezproxy.library.uq.edu.au/10.1134/S0005117914080141

4. Cominetti, Roberto; Correa, José R.; Stier-Moses, Nicolás E. (2009-06-03). 

"The Impact of

Oligopolistic Competition in Networks" (https://pubsonline.informs.org/doi/abs/10.1287/opre.1080.

0653)

. Operations Research. 57 (6): 1421–1437. 

doi

:

10.1287/opre.1080.0653 (https://doi.org/10.

1287%2Fopre.1080.0653)

. 

ISSN

 

0030-364X (https://www.worldcat.org/issn/0030-364X)

.

5. 

"Duopoly" (https://www.intelligenteconomist.com/duopoly-market-structure/)

. Intelligent

Economist. 2019-04-15. Retrieved 2020-11-05.

6. 

Body of Knowledge on Infrastructure Regulation (http://www.regulationbodyofknowledge.org/mark

et-structure-and-competition/)

 “Market Structure: Introduction.”

 Media related to Markets at Wikimedia Commons

Microeconomics (http://www.egwald.ca/economics/index.php) by Elmer G. Wiens: Online

Interactive Models of Oligopoly, Differentiated Oligopoly, and Monopolistic Competition

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