An Essay on Moligopoly Model

What is it about?

This chapter has attempted to provide a strong structural foundation of the newly emerged economic model of moligopoly in the era of growing digitization. The explosive nature of digitization since the beginning of the first decade of 21st century has posed some major problems for the existing textbook economic models since they have failed to explain the market forms within which the “Big Tech” firms are operating. Going by the standard norms of non-collusive oligopoly models, these technological behemoths do not form reaction functions – although they display all the natural ‘traits' of a monopolist. Thus, the new economic model of moligopoly may be defined as a hybridization of monopoly and oligopoly models, respectively. In this chapter, four major “Tech giants”; namely, Netflix, Microsoft, Facebook, and Google, are taken as sample firms for time series analysis to lay the foundation stone of moligopoly model and its related postulates.

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Photo by Mick Haupt on Unsplash

Photo by Mick Haupt on Unsplash