BSAB 415 - 3.2 Assignment.docx - 3.2 Airline Economics 1 Airline Economics Oligopoly is a market structure in which a small number of firms has the

BSAB 415 - 3.2 Assignment.docx - 3.2 Airline Economics 1...

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3.2 Airline Economics 1 Airline Economics Oligopoly is a market structure in which a small number of firms has the large majority of market share. An oligopoly is similar to a monopoly, except that rather than one firm, two or more firms dominate the market. There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly impact and influence the others. (INVESTOPEDIA) Oligopolistic industries typically are characterized by high barriers to entry… In addition to few sellers, a similar product, and high obstacles to entry, oligopolistic industries tend to share several other characteristics. (Wensveen, 2011) Other general characteristics include, substantial economies of scale, growth through merger, mutual dependence, and price rigidity and non- price competition. The airline economic characteristic, however, has unique features than other oligopolistic industries.
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  • Fall '16
  • Kelly Lawton
  • Oligopoly, Northwest Airlines, Delta Air Lines

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