Main types of market structures and their functions
Types of market structures depend on their environmentfunctioning. For example, to which industry is one or another business entity. Researchers in their analyzes defined the criteria that are involved in determining the variety, namely:
- number of companies that represent certain products produced by a particular industry;
- characteristic of the finished product (differentiated or standard);
- presence of barriers or their absence on a way of occurrence of the companies in the certain branch (an exit from it);
- availability of information of an economic nature.
Types of market structures of imperfect competitioncan not be uniquely determined. That is why the manufacturer has certain opportunities in influencing the market. Types of market structures depend on subspecies of imperfect competition. So, when functioning in a monopoly, imperfection in competition is small and is associated only with the manufacturer's ability to produce products other than other types. In the conditions of oligopoly, the main types of market structures are widely classified and depend on the activities of existing companies. The presence of a monopoly implies the dominance of only one producer in the market.
Types of market structures are in closeDepending on the proposed products, especially if it is a limited number of companies. Thus, large corporations, concentrating in their hands the large parts of proposals in the market, may find themselves in special relations with other economic entities and the market environment. First, if they have a dominant position in the market, they can have a significant impact on the sale of products. Secondly, there may be some changes in the relationship between the market participants themselves. So, the attention of producers is riveted to the behavior of their competitors, so that their reaction when changing their behavior was timely.
Types of market structures in conditions of perfectcompetition - some abstract models that are quite convenient for analyzing the basic principles of the organization of market behavior of companies. Real reality claims otherwise, competitive markets are rare, as each company has its own face, and each consumer when choosing the goods of a particular company as a priority selects products for which not only its utility but also its price is characteristic, and also the attitude of the buyer to this firm and the quality of its products.
That is why the types of market structuresNumerous markets in imperfect competition, which were given their name due to the presence of imperfect natural mechanisms of self-regulation. In this environment of companies' functioning, one can observe the principle of the absence of deficits and surpluses, which may indicate the achievement of efficiency in the perfection of the market system.