1. The Positive Economist Susan Hayes PDST Economics Conference Economic Conference Markets 2 nd Oct 2010

2. Markets Perfect Competition Monopoly Monopolistic Competition Oligopoly

3. Perfect Competition

4. Who dictates price? The Consumer The Industry The Retailer... hence participants are a price taker

5. Does perfect competition exist? In practice it is impossible to find absolutely “perfect competition” Illustrative Examples: – Vegetables in supermarket – Convenience Stores (Gala, Mace, Centra) – Google, Bing, Yahoo!

6. Monopoly

7. How do Monopolies arise? LegislationIarnrod Eireann Mergers & TakeoversRyanair & Aer Lingus takeover Sole ownership of an essential factor or production An Post Economies of ScaleMicrosoft CartelsOPEC, SIPTU Product Differentiation & Advertising Google

8. A threat to Google’s Monopoly?

9. Does a monopoly provide an incentive or disincentive to innovate? No competition? Protecting the status of a monopoly Lure of access to a monopoly “The Tracker Mortgage” – Bank of Scotland, Ireland

10. Monopolistic Competition – The most common form of competition?

11. How can ‘one separate themselves from the crowd’ ? Advertising – Ryanair – 8202020 Cabs – Bank of Ireland Ads (with subtitles) Service – Minstrel on the side of my coffee – Tea when you arrive at a B&B – Google Instant Product – Burger.... “Happy Meal” – Green Energy Lightbulbs – (Extra) Low Fat Cream Cheese

12. Oligopoly….. “ dominated by a few very large firms”.... “depends on your market”

13. Examples Local Pubs, Butchers, Shopkeepers ESB, Airtricity, Bord Gais Vodafone,O2, Meteor

14. Barriers to Entry Economies of ScaleBP, Shell, Dragon Oil Channels of DistributionLanding Slots in airports Limit PricingMeteor, O2, Vodafone Brand ProliferationRTE, Newstalk, Today FM