Industry Structure: Perfect Competition or Market Power
Napster vs. The U.S. Recording Industry:

Analysis of the Economic Model of the U.S. Recording Industry

The article "When the Music Stops" by Nick Wingfield in the November 2002 issue of the Wall Street Journal, relates an interview with the founder of Napster, Shawn Fanning, after the death of his company at the hands of the recording industry. Not only does it discuss Napster's creator's future plans and what he thinks is the future of the online music industry, it also provides an insight into the economic principles at work in the recording industry. This paper endeavours to explore the economic principles concerning demand models and the practice of selective collusion among the big recording companies which are alluded to in the article, thereby generating more awareness and understanding in the legal ramifications that ensued from the birth of Napster.

Although the article refers to the collusion…...

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Bibliography

Dowd, Timothy J. (April 2001). The Napster Episode.  http://www.icce.rug.nl/~soundscapes/VOLUME04/Napster_episode.html 

Oligopoly. http://english.pbc.or.id/glos/o.html

Scott, John. (May 21, 2001). Who Will Make the Rules? Music Industry Faces Off at DC Conference.  http://www.openp2p.com/pub/a/p2p/2001/05/21/lawyers.html 

Wingfield, Nick. (November 2002). "When the Music Stops" in The Wall Street Journal, November 2002.  http://www.wsjclassroom.com/archive/02nov/MEDI.htm

Contracting with Imperfect InformationThe manufacturing firm marginal benefit, MB, for hours of legal service isMB=$400-2L, where L=hours per week of legal services.Marginal benefit represents the maximum price that a rational buyer would pay for an additional unit of anything. This means that the marginal benefit curve can be considered to be the demand curve. This curve can be represented on a graph by figuring out the end point and then drawing a straight line between these points.For this case, we will take the formula MB=$400-2L, where L represents hours of legal services. The first step is to find out the value of MB when L=0 (this will give the value $400-0, therefore the vertical intersection point is $400) and when the value of MB=0, the value of L will be (0=400-2L L=200). For this question there are no fixed costs and the marginal costs (MC) is constant and equal to…...

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References

Brickley, J. (2016). Managerial Economics and Organizational architecture (6th ed., pp. 356-376). McGraw-Hill Education.

Market Structure of Subway Sandwiches
At the national level, Subway operates in a nearly perfectly competitive market: there are a number of franchise competitors (Blimpee, Quiznos), regional chains, and independent establishments, and supermarkets Market barriers are reasonably low (a food truck can offer sandwiches and compete with a local Subway), consumers have a high degree of buying power (there is a low commitment level when buying a sandwich) and there are many available substitute goods. However, in some areas, competition may be less 'perfect' depending on the availability of other establishments where people on a quick lunch break can eat. Although there still may be many possible options, such as bringing lunch, the location and lack of competitors can make it easier for a Subway to thrive within a certain area.

Q2. What type of competition does your firm face? Who are some competitors? (Even if you said your firm is a…...

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References

Weiss, Steven. (2011). Subway vs. Quiznos. QSR Magazine. Retrieved April 18, 2011 at  http://www2.qsrmagazine.com/articles/columnists/steve_weiss/1008/ 

Zajac, Andrew. (2010, August 25). Restaurant chains, vending machines will have to post calories. LA Times. Retrieved April 18, 2011 at  http://articles.latimes.com/2010/aug/25/nation/la-na-fda-calories-20100825

Over the last few years, the government has exerted more control on the insurance industry by controlling premium rates meaning the industry has become less competitive on pricing. In addition to this, through Obamacare, the government has set requirements for healthcare insurers which have significantly reduced their medical loss ratio Dinan 396.
The second factor that affects the degree of competitiveness of the industry is the number of companies operating in the industry. This has been the major reason for the hundreds of mergers in the industry since this is the major driving factor for changes in market share. The last factor is government-provided health insurance. The government provides insurance plans which create significant competition for the private companies Vanness and olfe 101()

The productivity measures that can be developed are the number of health insurance consumers, average cost of providing medical cover and price of health insurance premiums. The number…...

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Works cited

Austin, D. Andrew, and Thomas L. Hungerford. The Market Structure of the Health Insurance Industry. Washington, DC: Congressional Research Service, 2009. Print.

Baughman, Reagan. "Differential Impacts of Public Health Insurance Expansions at the Local Level." International Journal of Health Care Finance and Economics 7.1 (2007): 1-22. Print.

Dinan, John. "Shaping Health Reform: State Government Influence in the Patient Protection and Affordable Care Act." Publius 41.3 (2011): 395-420. Print.

Dossche, Maarten, Freddy Heylen, and Dirk Van den Poel. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data." The Scandinavian Journal of Economics 112.4 (2010): 723-52. Print.

Of course, this is a good thing for customers on short-term, but is negatively affects other companies on the market. This is because smaller competitors and especially those that intend to enter the market addressed by IBM find it at least difficult to provide product prices in accordance with those provided by IBM. These smaller companies do not have the ability of reducing their production or operating costs, which does not allow them to introduce competitive prices on the market. This way, they are clearly disfavored by IBM's position and market power.
In addition to this, in a field like it, it is imperative to make continuous investments into the research and development activity. This requires significant capital amounts from these companies. The investment levels that IBM reaches cannot be reached by many of these companies. This makes it difficult for these companies to keep up with IBM and its…...

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Reference list:

1. Oates, J. (2009). IBM Faces EU Monopoly Probe. Enterprise. Retrieved November 14, 2010 from  http://www.channelregister.co.uk/2009/01/20/ibm_eu_probe/ .

2. Annual Report (2010). IBM. Retrieved November 15, 2010 from  http://www.sec.gov/Archives/edgar/data/51143/000104746910001151/a2195966z10-k.htm .

3. Monopoly: A Brief Introduction (2006). Linux Information Project. Retrieved November 15, 2010 from  http://www.linfo.org/monopoly.html .

4. O'Gara, M. (2010). EC Opens Two Antitrust Investigations of IBM. Retrieved November 15, 2010 from http://soa.sys-con.com/node/1478919.

Antitrust Practices and Market Power
The modern business environment is increasingly characterized by the proliferation of emerging monopolies in various industries. One of the industries that have experienced an increase in budding monopolies is Information Technology, particularly with the growth and development of social media and networks. Technology companies have rapidly developed into monopolies because of the connection between attractive business opportunities. The growth of leading technology companies into monopolies has also been fueled by their efforts to gain and maintain market power. However, some of these companies such as Google, AT&T, Standard Oil, Microsoft, and Facebook have been investigated for antitrust behavior.

Similar to Google, Facebook is company whose growth and development is partly attributed to the failure by Microsoft to strangle it like it did to Netscape a decade before. Facebook's business and operations are entirely built on focusing on developing network effects since the firm's value for users is…...

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References

European Commission (2014, October 24). Antitrust: Commission Probes Allegations of Antitrust Violations by Google. Retrieved November 13, 2014, from  http://europa.eu/rapid/press-release_IP-10-1624_en.htm 

Fox, J. (2013, January). The Web's New Monopolies. Atlantic Monthly, 30-34.

Windrum, P. (n.d.). Back from the Brink: Microsoft and the Strategic Use of Standards in the Browser Wars. Retrieved November 13, 2014, from http://arno.unimaas.nl/show.cgi?fid=292

Mergers can also help at least come domestic companies become competitive with international ones. Mergers potentially free up increased money for research and development.
Yes, it is possible for mergers to be beneficial overall. There is no blanket yes or no judgement that applies to whether or not mergers are beneficial. They are generally beneficial if the above conditions are met along with the following conditions: There remains sufficient competition that the newly formed company cannot enforce monopolistic conditions and that there remains freedom of entry into the market sector for new firms.

3. Why are competitive markets considered more efficient than monopolistic markets? Give economic reasons. Give a real-live example of a market that tends to be competitive and one that tends to be monopolistic. Describe characteristics that support your classification. Is there evidence of efficiency or inefficiency in either of the markets you describe?

Competitive markets are considered to be…...

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References

Managerial Economics: Economic Tools for Today's Decision Makers (6th ed.). Retrieved from  http://www.coursesmart.com/login .

Market power can exist when there are substantial barriers to entry into the indus-try. Expectations about incumbent reactions, incumbent advantages, and exit costs all can serve as entry barriers.
The extreme case of a firm with market power is monopoly, where the industry con-sists of only one firm. Here, industry and firm demand curves are one and the same. In contrast to competitive markets, consumers pay more than marginal cost and the firm earns economic profits. Output is restricted from competitive levels. With a monopoly, not all the potential gains from trade are exhausted.

Monopolistic competition is a hybrid between competition and monopoly. It is like mo-nopoly in that firms under both market structures face downward-sloping demand curves. Market power comes from differentiated products. Examples include the toothpaste, golf ball, tennis racket, and shampoo markets. The analyses of output and pricing policies are similar in the two cases. The difference between…...

Managerial EconomicsOutlineIntroductionOverview of Market StructureOverview of Pricingelationship between Market Structure and Pricing StrategyMarket Structure Pricing Practices Pricing Practices for Monopolistic, Monopolistic Competition, and Oligopolistic Markets Pricing Practices for Perfect Competition Markets Price Matching Inducing Brand Loyalty andomized PricingConclusioneferencesMarket Structure Pricing PracticesMarket structure is one of the major factors that shape decisions made by business owners and managers. Generally, business owners and managers do not make decisions in a vacuum as they consider various factors including market structure. Market structure is an important aspect of decision-making in businesses as it shapes decisions on how much output to produce and pricing of products/services (Baye & Prince, 2017). The consideration of these factors is essential to promote business success and profitability. Given its impact on pricing or products/services, there is a nexus between market structure and pricing practices. In this regard, decisions on pricing are influenced by consideration of the market structure. This…...

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ReferencesBaye, M.R. & Prince, J.T. (2017). Managerial economics and business strategy (9th ed.). New York, NY: McGraw-Hill Education. Farm, A. (2019, May 31). Pricing in practice in consumer markets. Journal of Keynesian Economics, 43(1), 61-75.Indounas, K. (2018). Market structure and pricing objectives in the services sector. Journal of Services Marketing, 32(7), 792-804.Kienzler, M. & Kowalkowski, C. (2017). Pricing strategy: A review of 22 years of marketing research. Journal of Business Research, 78, 101-110.Labaj, M., Morvay, K., Silanic, P., Weiss, C. & Yontcheva, B. (2017, October 4). Market structure and competition in transition: Results from a spatial analysis. Applied Economics, 50(15), 1694-1715.Toni, D.D., Milan, G.S., Saciloto, E.B. & Larentis, F. (2017). Pricing strategies and levels and their impact on corporate profitability. Revista de Administracao, 52, 120-133.

Market Study and Potential for EOT Cranes, Gantry Cranes, Jib, and the Market for Imported European Hoist and Crane Components in India.
A boom in the construction industry caused a corresponding boom in the demand for construction building equipment (specifically in cranes and hoists), which shows prediction of increasing in the future. Cement, steel, and construction industries have all been involved in this popularity, all of them requesting EOT cranes, Gentry cranes, JIB cranes and European-imported hoist and crane components. The market for machinery is huge, particularly for used machinery coming from Europe with the latter mostly being used in the unorganized sector. Off Highway esearch (OH), reported that in 2009, India sold 6,499 mobile cranes, most of which have been the pick and carry type. As of 2011, the market size for EOT cranes and hoists is approximately s 1,500 crore to 1,700 crore (Project Monitor). By the year 2010,…...

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References

Basistha, P.P. 2008. 'Lifting Boom'. NBM Media, [Online] Available at:  http://www.nbmcw.com/reports/market-research/equipment-machinery/848-lifting-boom.html 

Cranes Today. n.d. Middle East Cranes. 'BC India Show Preview'. [Online] Available at: http://www.cranestodaymagazine.com/story.asp?storyCode=2058704&sectioncode=66

Cranes Today. N.d. Middle East Cranes. 'Excon 2007, Bangalore, India.' [Online] Available at:

http://www.cranestodaymagazine.com/story.asp?storycode=2047960

Market Patterns
One industry that has shifted in the past few years in terms of its structure is the smartphone operating system market. A few years ago, most of the early smartphones were based around proprietary operating systems. Palm and Blackberry dominated the market. Apple joined the industry with the introduction of the iPhone, but more recently other firms have entered the market as well, including Google (Android), indows, Symbian and other systems. The market has moved from a stable oligopoly of four firms basically between two firms into a market that is much closer to monopolistic competition. However, there is the risk that as operating systems shake out, the market could return to an oligopoly of just three operating systems (est & Mace, 2007).

In the short-run, firms in this industry will seek to gain market share through differentiation. The products are slightly differentiated from each other -- they perform the…...

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Works Cited:

West, J. & Mace, M. (2007). Appropriability, proximity, routines and innovation. Druid Summer Conference 2007. Retrieved February 4, 2012 from http://www2.druid.dk/conferences/viewpaper.php?id=1675&cf=9%20{^

Seppala, (no date). Monopolistic competition. University of Illinois. Retrieved February 4, 2012 from http://www.econ.uiuc.edu/~seppala/econ102/lect15.pdf

Watkins, T. (no date). The transaction cost approach to the theory of the firm. San Jose University. Retrieved February 4, 2012  http://www.sjsu.edu/faculty/watkins/coase.htm 

Blodget, H. (2011). Android is destroying everyone, especially RIM -- iPhone dead in water. Business Insider. Retrieved February 4, 2012 from http://articles.businessinsider.com/2011-04-02/tech/30089528_1_android-phones-google-s-android-smartphone-market

The crux of this challenge however is the distribution and fulfillment system, an area Amazon.com for example had streamlined for low-quantity orders before ever launching their website and online store. This equates to what Elberse and Oberholzer-Gee (2006) mention as the ability of online retailers to in effect feed the creation of long-tail markets by representing thousands of products online and fulfilling them through synchronized order management and supply chain systems.
According to Newman (2005) the network centricity of the Power Law is a contributing factor to its efficiency. From the standpoint of online retailers, this network effect is illustrated by the level of supply chain integration, synchronization, and the use of real-time shared data to create stronger hub-like efficiencies within a Power Law-dominated industry. One assumption and area of future research is in the definition of velocities of information throughout a Power Law network. Figure 2 shows a graphical…...

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References

Columbus (2001) - Defining Your Direction in Guided Selling. AMR Research. November 1, 2001. Louis Columbus. Accessed from the Internet on September 24, 2006 at http://lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf

Elberse and Oberholzer-Gee (2006) - Superstars and Underdogs: An Examination of the Long Tail Phenomenon in Video Sales. Harvard Business School Working Paper Series No. 07-015. September 5, 2006

Newman (2005) - Power laws, Pareto distributions and Zipf's law. Contemporary Physics. Volume 46, Number 5, September 2005. Pages 323-351.

Only then will the moe effective use of knowledge occu and its value is de-politicized, making it moe potent in geneating pofits (Chatand, 1985).
It is a paadox that the moe challenging, disuptive and uncetain a given industy is the moe oganizations factionalize thei stuctues, ceating splinte goups and politically volatile stuctues that only acceleate a company's demise. The paadox is that in the toughest and uncetain of times in the telecommunications industy, Veizon Telecommunications needs to think moe about how they too can be a disuptive foce in the maket. Instead, the management team is focused on a highly balkanized, vey politically-diven agenda of holding onto powe by ceating smalle silos o depatments that can easily manage the data that is peceived as the most valuable asset thee is in the oganization. The paadox comes full cicle when a company is sold in pieces and the sold unit o…...

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references added

Chartrand, R.L. (1985). The politics of information. Journal of the American Society for Information Science, 36(6), 376-376.

Frederic Jallat, & Ancarani, F. (2008). Yield management, dynamic pricing and CRM in telecommunications. The Journal of Services Marketing, 22(6), 465-478.

Liljander, V., Polsa, P., & Forsberg, K. (2007). Do mobile CRM services appeal to loyalty program customers? International Journal of E-Business Research, 3(2), 24-30,33-40.

Piercy, N.F. (1989). Information control and the power and politics of marketing. Journal of Business Research, 18(3), 229-229.

Market Society and the Public Sphere
My journal text comes to illustrate the utmost significance of globalization viewed as the force molding and shaping the current world. It describes the multidimensional aspect of globalization that influences and encompasses all facets of life through an integrated network. Currently, globalization is the buzzword in media articles, daily talks of media people and talks of politicians. There is no aspect of life that is not influenced or affected by globalization (Tober, 2006, 33). However, many people find it difficult to reflect on this phenomenon. This is because the term is applied in so many aspects leading to its ambiguity in defining it according to my text.

Numerous volumes of work have written about globalization in numerous fields such as political, science, business, economics, sociology and many more. This has made the term globalization lack a precise cogent theory and definition. This is seen as a…...

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References

Barnet, R. & Cavanagh, J. (2004). Global dreams: imperial corporations and the new world order. New York: Simon & Schuster

Hass, R. (2003). The corporation without boundaries. The new paradigm in business: emerging strategies for leadership and organizational change. New York: Tarcher/Perigee.

Kapstein, B. (2004). Governing the global economy: international finance and the state.

Cambridge. MA: Harvard University Press

Even public transportation is growing more expensive, given that cash-strapped states are raising fares.
SOT Analysis:

Strengths

Victory offers customizable bikes with great value and power, according to its promotional literature. I

eaknesses

Victory began as an "offshoot" of Polaris Industries, which is mainly known for marketing snowmobiles and ATVs. Amongst the target audience, particularly in the South and areas where snowmobiling is uncommon, it may have little brand recognition.

Opportunities

The economic downturn and demand for more fuel-efficient vehicles could be capitalized upon as a great opportunity for the company -- more individuals are likely to be seeking out motorcycles as a mode of transportation.

Threats

In a recent head-to-head of Harleys and Victories, one trade magazine said that Victory produced the superior model, but Harley had the better-known name: "It comes down to cooler character of the Harley vs. The better handling, more powerful Cross Country. I know which one I'm choosing," concluded the reviewer (Cherney,…...

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Works Cited

Cherney, Andrew. 2010 H-D Road Glide vs. 2010 Victory Cross Country: New breed of baggers busts out. Motorcycle Cruiser. 2010. October 7, 2010 at  http://www.motorcyclecruiser.com/roadtests/1004_crup_2010_hd_road_glide_vs_2010_victory_cross_country/motorcycle_design.html 

Scooters and Motorcycles Popularity and Wrecks Increase. Technology for the Future. July 21, 2010. October 7, 2010 at  http://techus.org/2010/07/scooters-and-motorcycles-popularity-and-wrecks-increase/ 

Victory Motorcycles. Official website. October 7, 2010.

 http://www.polarisindustries.com/en-us/victory-motorcycles/Pages/Home.aspx

In conclusion, Mexico operates under a mixed economic system that combines market economy and planned economy elements. This system promotes innovation, balances social responsibilities, and maintains a diverse economic structure. However, drawbacks such as excessive taxation, government monopolies, and ineffective regulations can hinder economic growth. The market structure in Mexico consists of dominant firms in sectors like telecommunications, cement, electricity, and petroleum. This structure impacts output, prices, and profitability, affecting consumers and producers differently based on the type of market power involved, such as oligopoly and monopoly. The COVID-19 pandemic has had both positive and negative impacts on households and....