Even for a huge multinational like Starbucks, competing globally requires knowledgeable monopolistic competition and knowing local tastes and habits.
Will Conspicuous Consumption Add to iPhone 6 Sales?
As an oligopoly, through pricing power and product differentiation, Apple takes advantage of the conspicuous consumption customers could experience.
How Much Do You Care About Your Independent Book Store?
The price floor in France’s Anti-Amazon Law protects independent booksellers and their cultural contribution but diminishes efficiency and raises prices.
Back to the Future… of Air Travel
Although 82% of the U.S. airline industry is dominated by 4 airlines, it is not a typical oligopoly because of new small airlines flying routes that the bigger carriers cut.
Why is the Milk at the Back of the Store?
Because market structure shapes a firm’s behavior, a supermarket’s product placement relates to the monopolistic competition that characterizes its market.
Our Weekly Roundup: From Cupcake Bubbles to Indian Villages
An Econlife roundup for the week 7.06.14 The tough part of cutting federal spending…more 7.07.14 When a village in India got a new road, surprising economic changes quickly unfolded…more 7.08.14 Who ever thought that a reclining chair could resuscitate…
The Reason I Will Return to My Local Movie Theater
I usually avoid going to my local AMC movie theater. Decades old, it has had a decaying lobby, saggy seats, and a rather worn-out feeling. Several weeks ago, though, as the only place with a good time to see Chef, I…
Why Mickey Mouse Worries About Monopsonies
No, we don’t mean monopoly. A monopoly is the single seller in a large or small geographic area. Monopsony, by contrast, indicates there is a single buyer. Where are we going? Whereas a monopoly has the power to charge too high a price, the amount…
What do Polish Pretzels, Parmesan Cheese, and Champagne Have in Common?
Polish pretzels sound delicious. Called “obwarzanek,” they are round, have a hole in the middle, are boiled, then baked, and can be sesame, poppy, salt or cheese. Although they resemble a bagel, there is one big difference. They have an…