Next Question
Mahalo is adding a tip to all questions that don't offer a tip.
M$1.00 Funded By Mahalo ? |
April 06, 2009 06:57 PM
RSS
No, the US airline industry is not an oligopoly at all. It is a competitive market, with many players competing for the same customers.
In an oligopoly, there are a few sellers for the entire industry. These sellers are also known as oligopolists. For most oligopolies, any decision one seller makes, is influenced by what the response and reactions of the other parties in the oligopoly will be.
There are several oligopoly's in the US. The oil and media industries are two examples, and some consider the mobile telecommunications market an oligopoly as well.
Oil and aircraft are two industries that also have worldwide oligopolies, since the markets are very difficult to enter, and the costs of starting a business in one of those industries is very high.
Source(s):
http://en.wikipedia.org/wiki/Oligopoly
http://www.oligopolywatch.com/
Permalink | Report
There are just too many airlines to be considered an oligopoly. In addition, airlines frequently get into price wars, causing unprofitable conditions. That's not something that typically happens in an oligopoly.
However, there are similarities. The barrier to entry into the airline industry is extremely high. And players in the industry do try to work to maximize profits, and strategically plan when their price changes go into effect. But even with these similarities, they simply cannot be considered one.
Permalink | Report
Answered Question
Mahalo is adding a tip to all questions that don't offer a tip.
Is the U.S airline industry have the characteristics of an oligopoly?
From my limited unerstanding of the term I don't believe it is. The airlines really don't collude together from what I know...
Interesting Question?
Yes (0)
No (0)
RSS
Best Answer Decided by Votes
| April 06, 2009 07:50 PM |
In an oligopoly, there are a few sellers for the entire industry. These sellers are also known as oligopolists. For most oligopolies, any decision one seller makes, is influenced by what the response and reactions of the other parties in the oligopoly will be.
There are several oligopoly's in the US. The oil and media industries are two examples, and some consider the mobile telecommunications market an oligopoly as well.
Oil and aircraft are two industries that also have worldwide oligopolies, since the markets are very difficult to enter, and the costs of starting a business in one of those industries is very high.
Source(s):
http://en.wikipedia.org/wiki/Oligopoly
http://www.oligopolywatch.com/
Permalink | Report
Voted as best: ensorceled
Reply
Other Answers (1)
April 06, 2009 07:05 PM
No, I don't believe they are an oligopoly. Oligopolies exist to cut down on competition and to raise prices as much as they feasibly can. There are just too many airlines to be considered an oligopoly. In addition, airlines frequently get into price wars, causing unprofitable conditions. That's not something that typically happens in an oligopoly.
However, there are similarities. The barrier to entry into the airline industry is extremely high. And players in the industry do try to work to maximize profits, and strategically plan when their price changes go into effect. But even with these similarities, they simply cannot be considered one.
Permalink | Report
Reply
Answer this Question
Related Questions
Ask a Question
Buy Mahalo Dollars with Credit Card or PayPal
Top Members
Most Popular Tags
Categories
- Anonymous
-
Arts & Design
-
Beauty & Style
-
Books & Authors
-
Business
-
Cars & Transportation
-
Consumer Electronics
- Coupons Deals
-
Education
-
Entertainment
-
Environment
-
Fitness
-
Food & Drink
- From Email
- From Iphone
- From Twitter
-
Health
-
History
-
Hobbies
-
Home & Garden
-
How Tos
-
Humor
-
Jobs
-
Legal
-
Local
-
Love & Relationships
-
Mahalo Answers Community
-
Money
-
Music
-
News
-
NSFW
-
Parenting
-
Pets
-
Science & Mathematics
-
Services
-
Shopping
-
Social Science
-
Society & Culture
-
Sports
-
Technology & Internet
-
Travel
-
Video Games
Welcome New Members
- lisaeileen03, November 09, 2009 05:10 AM
- mamapeeps22, November 09, 2009 05:06 AM
- mountainminiatu..., November 09, 2009 04:50 AM
- misslys17, November 09, 2009 04:48 AM
- nomie, November 09, 2009 04:44 AM
Mahalo Dollars are the currency of Mahalo Answers.
Each Mahalo Dollar costs $1.
Once you earn more than 40 Mahalo Dollars, you can request to be paid via PayPal. Each Mahalo Dollar is currently worth $0.75 when paid out via PayPal. Learn More
