Markets: Oligopoly

[maryanndimand]

Oligopolistic markets are composed of the firms you probably think of most often. They are dominated by a small number of brand-name firms, each with some market power. Coke and Pepsi. Lockheed Martin and Boeing. Deloitte, PriceWaterhouseCoopers, Ernst & Young, KPMG

Comments

[resonant]

Plus, intentional or deliberate, regulatory lock is an issue.

To break into the business, you have to comply with a confusing mesh of standards, regulations, best practices, and certifications. All written by lawmakers controlled by the existing companies, or by industry groups led by the existing companies, or by regulatory bodies whose members are part of the existing companies.

[maryanndimand]

I think that what you mean by regulatory lock is what I know as regulatory capture (Niskanen), in which (as you say) the regulated leverage their role as experts in their field to gain control of the agencies founded to regulate them?

And, yes, indeed. Thanks for the contribution!