Oligopoly In America

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The article “Beyond United: How oligopolies hurt Americans’ pocketbooks” written by James Downie for The Washington Post discusses the financial issues that arise from oligopoly control. The article explains how, because of mergers, the airline industry has gone from nine major companies to just four. The author argues, “Travelers can’t avoid higher fairs and fees unless they choose not to fly” (Downie). Downie brings attention to the growing profits for the consolidated airline companies while consumers pay the same or higher prices. He also explains how the drug industry operates as an oligopoly with only three companies controlling 75 percent of the market. These three companies control drug prices and touch every wallet in America. Downie…show more content…
An oligopoly exists when a few firms control most of the industry. There are many industries in the American economy that are controlled by oligopolies. The automotive industry, Smartphones, cellular service providers, film companies, and toothpaste are all industries considered oligopolies. Each of these industries is dominated by just a few corporations. To the average consumer, it can sometimes be unclear just how much a single corporation controls. Companies will regularly merge under one parent company yet retain their individual names. This leads to the appearance of choice yet, no matter what, our money is going to one of the same few companies. Due to the amount of control these corporations have over the industry, they can often behave in an almost monopolistic…show more content…
It has been interesting focusing on the economy on a smaller scale. Companies must make decisions that focus on their own industry as well as the entire economy. I find pricing structures fascinating. It is very interesting to see how and why companies chose certain prices for their products. They must be mindful of what others in their industry are doing as well as how consumers feel about their product. I am more confident in my knowledge regarding individual industries. I am more confident in my understanding of oligopolies, how they form, and why they are damaging to our
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