Assess the view that making an oligopolistic market more contestable is the best way to improve its efficiency
Jonathan. K. Kush is the lead business writer at 123 Writing. He holds a BA (Hons) degree in Business Administration from the University of Brighton, UK. As a Market Research Analyst by profession, Jonathan has nearly a decades experience in market research and business analysis. His passion includes studying markets and industry trends to understand their impact on company strategy, performance and ways firms can mitigate their environment to outcompete rivals.
Latest posts by Jonathan Kush (see all)
Market efficiency means that all players in the market have full and perfect information which helps them make timely and informed decisions especially on pricing. This then implies that all participants have full information to make timely decisions about investments, buying and selling. As such, an oligopoly market which is a market with few sellers and many buyers (see Griffiths and Wall, 2011; Sloman, 2011; Mankiw, 1990) should be made contestable in order to be efficient. But is this possible bearing in mind few sellers could have more power for example in determining the prices to be charged in a particular market down playing the forces of demand and supply? To some extent, an oligopoly market needs more thinking strategically compared to other market structures like monopolies or perfect competition where sellers are faced with a well outlined demand curve for the outputs and quantity is chosen where MR=MC. In an oligopoly, sellers are big and can influence the market.
HARVARD
Citation Here
Citation Here
APA
Citation Here
A2 AQA Economics (2140) ECON3 Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand all the nuances of what an oligopolistic market is
- Get an understanding of how contestability improves efficiency in an oligopolistic market
Module: A2 AQA Economics (2140) ECON3
Assignment Title: Assess the view that making an oligopolistic market more contestable is the best way to improve the efficiency of that market. [25 marks]
Word Count: 800 words
1.0 INTRODUCTION
Market efficiency means that all players in the market have full and perfect information which helps them make timely and informed decisions especially on pricing. This then implies that all participants have full information to make timely decisions about investments, buying and selling. As such, an oligopoly market which is a market with few sellers and many buyers (see Griffiths and Wall, 2011; Sloman, 2011; Mankiw, 1990) should be made contestable in order to be efficient. But is this possible bearing in mind few sellers could have more power for example in determining the prices to be charged in a particular market down playing the forces of demand and supply? To some extent, an oligopoly market needs more thinking strategically compared to other market structures like monopolies or perfect competition where sellers are faced with a well outlined demand curve for the outputs and quantity is chosen where MR=MC. In an oligopoly, sellers are big and can influence the market.
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
