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pls dnt thnk my question as a weird one ...pls generally airlines company comes under oligopoly , bt my point is tat it must be in perfect competition its bcoz different airlines sell identical products to buyers .. here d key word identical product suits perfect competition more thn oligopoly can anybody say wat am thnkng is ryt or wrng

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(Guest)

there cant be a perfect market for the airlines bcause the prices are quite dependent on the compititors not by the buyers , for example if the jet is going to reduce the prices indigo is bound to reduce it whether they will survive or not its secondary , however in the perfect market the prices are determined by the buyers not the seller , not exactely what i mean to say is the prices are just above the cost of production i.e to say cost or prodution /services plus resonable prices

however in oligopoly market the compitiors decide there prices on the basis of the price charge by the other in the same industry

as far as u r qustion goes then there will be no oligopoly market bcause when the compitiors are selling the same product it cant be tell the requirement of perfect market

example of perfect market is share market or many are there but airlines , coldrinks and do fall in oligopoly market

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mridul savio Pinto (articled trainee ) (1477 Points)
Replied 16 February 2011

agree with ram singhania

mridul savio Pinto (articled trainee ) (1477 Points)
Replied 16 February 2011

the othe point why it is not possible to treat as perfect competition because , in India the airlines are divided into two categories full fledged airlines , 2 . low cost airlines ... the full fledged airlines are jet , kingfisher and air -india. while the low cost airlines are spicejet , go airlines , jet konnect , jet lite , indigo ....perfect competition requires large number of buyers and sellers .. and the services offered by them are also not identical . u can differentiate very well between a lowcost airline and the fullfledged

regards