Internet News Search: Market Structures

For your blog post this unit, I'd like you to find a news article about a market that you think is a monopoly, an oligopoly, or is monopolistically competitive. Sorry, but blogs, opinion pages, or Q&A sites are off limits.

• Be specific about the market:  i.e., "the US auto market", or "the market for family restaurants".
• Use specific quotes from the news article to convince us about the market structure.  
• Include a link to the article at the end.  
• Do not duplicate a market already analyzed by your classmates.
• For an extra mark, you may disagree with a classmate's analysis.  Tell us what you think the market sturcture should be and why.

For example, the mobile telecommunications market in the US is an oligopoly:

There are a few large firms:  "AT&T, Verizon and Sprint"

There is price leadership: "Verizon dropped its fees and AT&T followed suit to produce virtually identical results"

There is product differentiation:   there are different kinds of "calling plans," "data plans," and "service quality" and "coverage"

http://mobile.blorge.com/2010/01/20/att-verizon-price-war-dismissed-as-myth/

Have fun being "Economic Naturalists"!

The Economic Naturalist

I read a cool book over Winter Break -- The Economic Naturalist.  It's a collection of short explanations for every day oddities -- all written by Econ students!  Here are some examples of the enigmas they observe:

Why are milk cartons rectangular, but soft drink cans round?
Why are there braille dots on the keypads of drive-up ATMs?
Why are the portraits on coins done in profile while those on paper money are in full face?

Your blog post for the end of the semester is to consider an odd situation you observe as you live your life here in Bahrain.  In your post, please do three things:

1)  Describe the situation and ask the question you will answer.
2)  Offer the simplest economic explanation.
3)  Briefly consider the greater complexity of the situation.

Keep your limit to 200 words.  To give you an example, I've posted mine as the first comment [175 words :-)].  Have a look at it to get your ideas flowing.

I hope you will see economics all around you.  Have fun!