Competition – Monopole, Oligopoly, Duopoly, Monopole

Competition – Monopole, Oligopoly, Duopoly, Monopole

Characteristics of competition

Competition is type of economic competition. It is a situation when each market subjects can enter the market.

These market subjects can be examples listed below:

1. Assessing the price
2. Determining the design
3. Determining the colour
4. Determining the brand
5. Attracting customers with benefits

Basic characteristics of competition is difference of products and services from other producers and salespeople.

Example of competition

For example spas. One spa offers a special offer for children to twelve years and the second spa offers a special offer for all children.

These spas do not stop each other from offering their own benefits.    

Types of competition

1. Perfect competition

The perfect competition is a characteristic of competition. It is type of competition when producers and salespeople can enter the market. These subjects can assess the price and determine the design, colour, brand and these subjects can attract customers with benefits.   

1. Imperfect competition

The imperfect competition is the opposite of competition. Producers and salespeople prevent others from entering the market. These producers and salespeople stop to assess the price and determine the design, colour, brand and these subjects can´t attract customers with benefits.  

Types of imperfect competition

1. Monopoly

It is a type of imperfect monopole. One producer and one salesperson produce a specific type of product or service.  This producer or salesperson does not want to allow other producers and salespeople to  enter the market. The important factor of monopole is a price.   

Types of monopoly

1. Administrative monopoly

The administrative monopole is a situation when government´ s intervention is attended. Example of administrative monopole is a post office.

1. Specific monopoly

The specific monopole is a situation when some invention is invented.

1. District monopoly

The district monopole is a situation when companies are colluded in regulated branches.

1. Natural monopoly

The natural monopoly is a situation when government´ s intervention is not attended.

1. Oligopoly

Oligopoly is a type of imperfect competition. Oligopoly is a situation when limited number of producers and salespeople are attended.

Types of oligopoly

1. Homogeny oligopoly

Homogeny oligopoly is a situation when limited number of producers and salespeople produce a specific types of products and services.

1. Heterogenic oligopoly

Heterogenic oligopoly is a situation when limited number of producers and salespeople produce a different types of products and services.

1. Oligopoly with dominate company

Oligopoly with dominate company is a situation when dominate company with small business is in the market.

These companies compete together.

1. Absolute homogeny oligopoly

Absolute homogeny oligopoly is a situation when a small number of big businesses is attended.  

1. Relative homogeny oligopoly

Relative homogeny oligopoly is a situation when dominate company with small business is in the market.  

1. Duopoly

Duopoly is a type of imperfect competition. Duopoly is a situation when two famous producers and salespeople are attended. These producers and salespeople produce a specific type of products and services. The important factor of duopoly is a price.

1. Monopole competition

The finest type of imperfect competition is a monopole competition. Monopole competition is a situation when producers and salespeople are different and when products and services are different. Substitutes of products and services are imperfect.     

Other types of imperfect competition

• Cartel

Cartel is the agreement of companies which leads to limit the autonomy in decision making.

• Concern

Concern is a situation when companies are independent formally. But in fact these companies are not independent.

Types of imperfect demand 

1. Monospon

Monospon is a situation when 1 buyer is in the market. This buyer purchases a specific type of product and service. This specific type of product and service is sold by many sellers.

1. Duospon

Duospon is a situation when 2 buyers are in the market.  These 2 buyers purchase a specific type of product and services. This specific type of product and service is sold by many sellers.

1. Homogeny oligospon

Homogeny oligospon is a situation when the number of buyers in the market is limited. This limited number of buyers purchases a specific type of product and service. This specific type of product and service is sold many sellers.

1. Heterogenic oligospon

Heterogenic oligospon is a situation when the number of buyers in the market is limited. This limited number of buyers purchase a different type of product and service. This specific type of product and service is sold by many sellers.