Nancy was a customer service representative for the local water company. The company had exclusiverights to operate as the only company providing water to local residents since the costs to lay competingpipelines were a barrier to entry preventing competition. They were, however, regulated by thegovernment.Nancy was a telemarketer for a software company with many buyers and sellers. Everyone’s productswere fairly unique, but it was very easy to enter the software market. One advantage Nancy’s companyhad was that it had an informational advantage over many other companies.Nancy was an administrative assistant for an oil company with very few other sellers. Other companieshad trouble getting into the fossil fuel market. All the fossil fuel companies had the same information, butthey had an information advantage over the buyers.Nancy was a fruit vendor. In her market there were many buyers and sellers. It was easy and cheap to starta vendor stand. Everyone’s fruits were basically identical.
