Category: Competition

Introduction In 1956 Charles Tiebout in his article A Pure Theory of Local Expenditure introduced the notion that decentralization leads to superior variation in the provision of local public goods (goods that are tailored to better suit local population). He introduced the Tiebout model, a model that seeks to attest that decentralization is the solution…

1. Introduction We were all accustomed to the traditional taxi services, but this sector was not showing signs of evolution and users have to accept the service as it is. Then, the situation changed when online-enabled car transportation service like Uber appeared. Uber provides a service, which connects drivers with passengers by using a mobile…

Amazon is considered to be the biggest e-commerce platform that specializes in online retail, cloud computing, digital content and competes in thirty other industries. Amazon was established by Jeff Bezos on July 5, 1994, and began its venture as an online book shop, however later it extended to selling video/music content, computer games, hardware, clothing,…

In a world outside the bubble of childhood, real-life challenges enter into peoples paths whether they like it or not. It is something inevitable, and it happens in every single persons life. For this reason, being prepared of losing helps us face the harsh reality of life. Whenever kids join competitions or contests, most of…

Businesses in the modern market are required to continuously adapt and adjust to the changes in the market in order to stay competitive. Competition is an important aspect of a market and is widely known to be the process of operating in a market concurrently with other competitors in order to gain profit (Riggs, 2015).…

Oligopoly is one of the four market structures in the world and the other three are perfect competition, monopoly, and monopolistic competition. All these market structures have different features and characteristics that set them apart, but among them is a perfect competition that often serves as a benchmark for others. Indeed, perfect competition, in addition…

Introduction Competition is a divisive subject which has led to differing approaches to how it is modelled. The most widely accepted is the neoclassical view, which argues the benchmark is perfect competition, equilibrium is market clearing and pareto efficient. Market clearing is where the demand for goods equals the supply of goods so that there…

Understanding Monopolistic Competition in Fashion Monopolistic competition, by definition, is when an industry has many firms that offer similar products and services but not completely identical or the perfect substitute. In monopolistic competition, there are not many barriers to exit or enter making it easy for many firms to sweep into the market and offer…

Introduction In today’s fast-paced and competitive world, success is often associated with being the best, outperforming others, and striving for victory at all costs. The prevailing notion is that a competitive spirit is necessary for success. However, I argue that while competition can be a driving force for achievement, it is not the sole determinant…

Introduction An article published on 20 February 2019 by the Guardian discusses the concerns associated with the merger of two supermarket giants, ASDA and Sainsburys. The article resolves around Competition and Markets Authority (CMA) finding extensive competition concerns while investigating the proposed deal. Media has raised an issue concerning consumers and welfare, which are threatened…