Oligopoly Free Essay, Term Paper and Book Report
Oligopoly The Boeing Company
The Boeing Company was founded in 1916 by William Boeing. When they first started making planes there were not many plane makers. Over the years, competition in the commercial airline industry has evolved through different market structures, but now finds itself in a Oligopoly. What used to be an Oligopoly of four or five has been reduced to a monopoly in the United States and an Oligopoly in the international market through a series of mergers over the years. The two main competitors in the world market (speaking of aircraft with a capacity of over 120 passengers), are Boeing and Airbus. According to McConnell and Brue the definition of an oligopoly is a market dominated by a few large producers of a homogeneous or differentiated product. Because of their fewness, oligopolists have considerable control over their prices, but each must consider the possible reaction of rivals to its own pricing, output, and advertising decisions (McConnell & Brue, 2004 p. 467).
Boeing and Airbus both sell airplanes they are both looking for differentiation.......
Word Count: 578
Page Count: 2.3 (250 words a page / double spaced)
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