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MARKET STRUCTURE
MEANING
 Structure refers to something that organization and
dimension.
 And the market structure refers to the size and...
DEFINITION
 Market structure refers to those organizational
characteristics of a market which influence the
nature of com...
COMPONENTS OF MARKET STRUCTURE
CONCENTRATION OF
MARKET POWER
DEGREE OF PRODUCT
DIFFERENTIATION
CONDITIONS FOR ENTRY
OF FIR...
 It is an important element determining the nature of
competition and consequently of market conduct and
performance.
It...
DEGREE OF PRODUCT DIFFERENTIATION
Products are homogeneous, the price variation in the
market will not be wide.
When the...
FLOW OF MARKET INFORMATION
 The buyers and sellers to freely interact with one
another in arriving at prices and striking...
DYNAMICS OF MARKET STRUCTURE
MARKET CONDUCT
 Behaviour of firms, specially in relation to pricing and
their practices in ...
MARKET PERFORMANCE
 The economic result that flow from the industry as
each firm pursues its particular line of conduct.
...
Market
structure monopomonopoly
Monopolistic
competition
Perfect
competition
Oligopoly
Natural
monopoly
Geographical
monop...
PERFECT
COMPETITION
MONOPOLISTIC
COMPETITION
OLIGOPOLY
MONOPOLY
COMPETITION AND MARKET
STRUCTURE
More competition
Less com...
CLASSIFICATION OF MARKET STRUCTURE
Marketing structure should change
Production pattern
Cost and pattern of
marketing functions
Demand pattern
Technological
...
Market structure
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Market structure

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Transcript of "Market structure"

  1. 1. MARKET STRUCTURE
  2. 2. MEANING  Structure refers to something that organization and dimension.  And the market structure refers to the size and design of the market. It also include the manner of the operation of the market.
  3. 3. DEFINITION  Market structure refers to those organizational characteristics of a market which influence the nature of competition and pricing, and affect the conduct of business firms.  Market structure refers to those characteristics of the market which affect the traders behaviour and their performance.
  4. 4. COMPONENTS OF MARKET STRUCTURE CONCENTRATION OF MARKET POWER DEGREE OF PRODUCT DIFFERENTIATION CONDITIONS FOR ENTRY OF FIRMS IN THE MARKET FLOW OF MARKET INFORMATION DEGREE OF INTEGRATION
  5. 5.  It is an important element determining the nature of competition and consequently of market conduct and performance. It is measured by the number and size of firms existing in the market.  Restricts the movement of goods between buyers and sellers at fair and competitive prices.  Creates an oligopoly or oligopsony situation in the market.
  6. 6. DEGREE OF PRODUCT DIFFERENTIATION Products are homogeneous, the price variation in the market will not be wide. When the products are heterogeneous , firms have the tendency to charge different prices for their products. CONDITIONS FOR ENTRY OF FIRMS IN THE MARKET  Restrictions  Big firms do not allow new firms to enter the market or make their entry difficult by their dominance in the market.  Government restrictions on entry of new firms
  7. 7. FLOW OF MARKET INFORMATION  The buyers and sellers to freely interact with one another in arriving at prices and striking deals. DEGREE OF INTEGRATION  The behaviour of an integrated market will be different from that of a market where there is no or less integration either among the firms or of their activities.
  8. 8. DYNAMICS OF MARKET STRUCTURE MARKET CONDUCT  Behaviour of firms, specially in relation to pricing and their practices in adapting and adjusting to the market in which they function. Market sharing and price setting policies Policies aimed at coercing rivals Policies towards setting the quality of products
  9. 9. MARKET PERFORMANCE  The economic result that flow from the industry as each firm pursues its particular line of conduct. Performance and efficiency of the market structure are :  Use of resources  Monopoly or monopoly profits  Size and the number of the firms
  10. 10. Market structure monopomonopoly Monopolistic competition Perfect competition Oligopoly Natural monopoly Geographical monopoly Government monopoly Technological monopoly Differentiated oligopoly Pure oligopoly CHARECTERISTICS OF THE MARKET STRUCTURE
  11. 11. PERFECT COMPETITION MONOPOLISTIC COMPETITION OLIGOPOLY MONOPOLY COMPETITION AND MARKET STRUCTURE More competition Less competition MONOPOLISTIC COMPETITION OLIGOPOLY MONOPOLY Least control over price
  12. 12. CLASSIFICATION OF MARKET STRUCTURE
  13. 13. Marketing structure should change Production pattern Cost and pattern of marketing functions Demand pattern Technological change in industry
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