What is the market structure of the airline industry? Please support with examples and reasoning?
The market structure for airlines is an oligopoly. This means that there are only a handful of companies that compete in this industry. Oligopolies are more competitive than monopolies, industries for which there is only one seller of the product, but are less competitive than industries that experience near perfect competition. Before discussing how oligopolies work, a few words about monopolies and perfect competition… A monopoly exists when one seller is the only seller of the product or service. Some industries are prone to become monopolies naturally, and because the industry operates more efficient with one provider, they are allowed to become a monopoly but are regulated to keep the company from exploiting the buyers. For instance, electric companies are generally natural monopolies. Since it would not be worth it for a competing electric company to lay their own electrical lines all the way to your house when you might not even switch to them, only one company controls the el
