The main types of market structures and their functions

Types of market structures depends on the environment of their operation.For example, what industry is a particular business entity.The researchers in their analyzes the criteria involved in determining the species, namely:

  • number of companies which represent specific products produced by a particular industry;
  • characteristics of the finished product (differentiated or standard);
  • presence of barriers or lack of them in the way of joining the companies in certain industries (out of it);
  • availability of information of an economic nature.

Types of imperfect competition market structure can not be uniquely identified.That is why the manufacturer has some opportunities to influence the market.Types of market structures depends on the subspecies of imperfect competition.Thus, when operating in a monopoly imperfect competition in the small and connected only with the ability of a manufacturer to produce than the other varieties of goods.In the context of the main types of oligopoly market structures are widely classified and depend on the activity of the operating companies.The presence of monopoly domination involves only one manufacturer in the market.

Types of market structures are closely dependent on the products offered, especially if we are talking about a limited number of companies.For large corporations, concentrating in their hands most of the offerings on the market may be in a special relationship with other business entities and market environment.Firstly, if they have a dominant position in the market, they can have a significant impact on sales.Secondly, may undergo some change in attitude among the participants of the market.Thus, the attention is focused on the behavior of the producers of their competitors to their response when changing their behavior was timely.

Types of market structures of perfect competition - some abstract models that are comfortable enough to analyze the basic principles of the organization of the market behavior of companies.The reality argues otherwise, competitive markets are rare, because each company has a "face" and every consumer in the selection of goods a certain company as a priority selected products, which is characterized not only by its usefulness, but also the price, andas the ratio of the buyer to the company and the quality of its manufactured products.

That is why more numerous types of market structures in markets with imperfect competition, which got its name due to the presence of imperfect natural mechanisms of self-regulation.In this environment, companies can monitor the functioning of the principle of non deficits and surpluses, which may indicate the effectiveness of achieving a perfect market system.