KillerApps Micro: Market Structure
A cartel in detergents broke up over defections from agreed prices and promotion practices.
Fruit vendors may choose perfect competition or pricing power depending on foot traffic and other locational advantages.
Rising affluence and other social factors have led to the emergence of the dog care industry.
Regulatory protection has led to legal price fixing in the title insurance oligopoly at the expense of home buyers.
McDonald depends on free toys to drum up sales of mature Happy Meals.
Price hike is difficult to sustain in commodity business with many competitors.
Store brands gain competitive advantage by free-riding on name brandsí brand recognition and R & D.
Legacy habit of central planning has led to antitrust charges against Chinese vitamin C oligopoly.
Winners in the battle among proprietary standards can keep out competitors and lock in existing customers
The low marginal cost of reproducing DVD movies has made it difficult to stamp out the bootleg DVD business in China.
Mass customization using e-commerce and digital production technology has brought uniquely different products to suit individual tastes and a new component (niche competition) to the conventional textbook market structure.
By vertically integrating the chicken business and applying quality control and standardization to all the steps from production to marketing, Tyson Foods has brought better and cheaper chicken to consumers, higher wages to workers and fatter returns to shareholders in a once low-profit commodity business.
Mature oligopoly with a few large producers of homogeneous commodities is driven to output and price fixing to increase their profit.
By providing incentives for brand-name drug companies to fund expensive R&D, temporary patents for expensive blockbuster drugs inadvertently lead to cheaper generic rivals when the patents expire.
Market competition requires a balance of power between buyers and sellers.
Recession and bear stock market provide an environment for the fittest firms to expand and consolidate at the expense of weaker competitors.
In the PC business, low profit and generic products are compatible with market domination.
Knowledge-based industries subject to increasing returns because of high R&D fixed costs and low variable costs naturally tend to monopolize the market.
Far from increasing consumer surplus, falling prices for luxury goods such as freshwater pearls due to overproduction reduce both consumer surplus and producer profit.
Econometric analysis of store checkout scanners' data can directly predict whether a proposed merger will raise prices.