Competition Markets

Competition Markets

1. Perfect competition.

   • It is the situation in which none of the participating agents (sellers and buyers) have the power to influence the price of the offer.
     • It is a concept very far from reality, since products and services must be homogeneous and consumers, producers and sellers must accept the price set by the law of supply and demand.

2. imperfect competition

   • It is the type of competition that occurs in a practical way in the market and it is when the agents that compete in the market, both on the supply side and on the demand side, can manipulate the supply of products and the establishment of prices.

3. Oligopsony

   • It presents a market characterized by having few applicants, although the number of suppliers may be high
     • As there are few buyers, they are the ones who have control over prices, and the products and services offered in this type of market are usually homogeneous
       • A good example can be found in companies that manufacture airplanes, ships (for passenger transport) or submarines.

4. Monopsony

   • The situation is quite similar to that of the oligopsony, with the great difference that, in this case, there is a single claimant, who has complete control over the price and the conditions of purchase and sale.
     • The most obvious example can be found in the military arms industry, where the only consumer is the State.

5. Monopolistic competition

   • In it there are many producers offering products and services in the market, and none of them has the capacity or power to control and dominate over the rest.
     • There is freedom of entry and exit for these companies, which offer differentiated products and services in different aspects.

6. Monopoly

   • In the monopoly there is only one supplier, who exclusively provides the products and/or services in question, having a total degree of control over prices and conditions
     • This company totally dominates the supply market, and there are no possible substitutes for citizens who wish to purchase its product or service
       • An example may be the companies that supply electricity for a country

7. Oligopoly

   • There are very few bidding companies, and these have enough power to influence market conditions and prices
     • Its power is not as high as in a monopoly, since there is some competition between the participating companies
       • Here, the product can be differentiated (vehicle factories) or undifferentiated (gasoline).

8. duopoly

   • the duopoly occurs when supply and price are in the hands of two companies that compete in the market and consumers have no other choice about the quality and price of the goods and services they buy
     • Examples: Coke and Pepsi

9. Duopsony

   • The duopsony occurs in a market when there are two buyers who demand the market's production. The same thing happens as in monopsony but with two claimants.