Marketing: The Three Non Perfectly Competitive Models

The three non-perfectly competitive models
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The three non-perfectly competitive models
Monopolistic competitive Industry
Essentially, monopoly refers to a situation where there is simply one provider in the entire market. In other words, there is little or no competition at all in monopolistic competition. The perfect scenario of monopolistic competitive industries is pharmaceutical or medical firms. Pharmaceutical firms are described as monopolistic competitive industries since their products are close but not perfect substitutes of other firms (Belleflamme, & Peitz, 2015). This ideal empowers the medical firms with the monopoly powers to influence the market price of its products. Secondly, in pharmaceutical industries, there could be a considerable number of firms trading on closely related, though not homogeneous products. Indeed, every firm acts independently with a limited share of the market which is a basic characteristic of monopolistic competitive industries.
Oligopoly competitive industries
Oligopoly competition refers to a situation th...