Transcript PRESENTATION NAME

The Positive Economist
Susan Hayes
PDST Economics Conference
Economic Conference
Markets
2nd Oct 2010
Markets
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Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
Perfect Competition
Who dictates price?
• The Consumer
• The Industry
• The Retailer
... hence participants are a price taker
Does perfect competition exist?
• In practice it is impossible to find absolutely
“perfect competition”
• Illustrative Examples:
– Vegetables in supermarket
– Convenience Stores (Gala, Mace, Centra)
– Google, Bing, Yahoo!
Monopoly
How do Monopolies arise?
Legislation
Iarnrod Eireann
Mergers & Takeovers
Ryanair & Aer Lingus takeover
Sole ownership of an essential
factor or production
An Post
Economies of Scale
Microsoft
Cartels
OPEC, SIPTU
Product Differentiation &
Advertising
Google
A threat to Google’s Monopoly?
Does a monopoly provide an incentive or
disincentive to innovate?
• No competition?
• Protecting the status of a monopoly
• Lure of access to a monopoly
“The Tracker Mortgage” – Bank of Scotland, Ireland
Monopolistic Competition – The most
common form of competition?
How can ‘one separate themselves from
the crowd’ ?
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Advertising
– Ryanair
– 8202020 Cabs
– Bank of Ireland Ads (with subtitles)
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Service
– Minstrel on the side of my coffee
– Tea when you arrive at a B&B
– Google Instant
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Product
– Burger.... “Happy Meal”
– Green Energy Lightbulbs
– (Extra) Low Fat Cream Cheese
Oligopoly…
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• “dominated by a few very large firms”
• .... “depends on your market”
Examples
• Local Pubs, Butchers, Shopkeepers
• ESB, Airtricity, Bord Gais
• Vodafone,O2, Meteor
Barriers to Entry
Economies of Scale
BP, Shell, Dragon Oil
Channels of Distribution
Landing Slots in airports
Limit Pricing
Meteor, O2, Vodafone
Brand Proliferation
RTE, Newstalk, Today FM