What Model Of Market Structure

1455 WordsNov 3, 20156 Pages
Business in any city are challenging commodities that produce gain for the population. This city growth is well developed and incumbent by the market structure it abide by. The wisdom of crowds is based on the assumption that valuable knowledge in social systems frequently exists only as dispersed opinions, and that aggregating dispersed information in the right way can produce accurate predictions. A prediction market provides a vivid illustration of the power of the wisdom of crowds. (Qiu, L., Rui, H., & Whinston, A. B., 2014) This outline will break down the various market structures and will clarify all questions pertaining to the business in the city. The business will have to determine what model of market structure they will decide to use. All market structures have their own characteristics the first on the list is Perfect Competition. It describes a marketplace that no one participant can set the market price of an exchangeable product. This idea is well opened for interpretation from the consumer to seek these type of structure for example online auctions. These markets are theorized to have an unlimited number of buyers and sellers. With a structure which provides no entry and exit barriers makes it extremely easy to enter or exit a perfectly competitive market. Monopolistic Competition is a market structure in which many firms sell products that are similar but not identical. The business that better describe this structure are restaurants, clothing and other

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