Analysis of Oligopolistic Trends in Australian Banking Industry

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
Introduction................................................................................................................................2
Summary of the Article..............................................................................................................2
Economic Analysis and Interpretation.......................................................................................3
Conclusion..................................................................................................................................6
References..................................................................................................................................7

2ECONOMICS ASSIGNMENT
Introduction
The different theoretical and conceptual frameworks prevailing in the contemporary
economics, developed with time and with the dynamics in the global economic scenario, are
found to have considerable relevance with the real economic activities across the globe and
the same also have implications in the interpretation of the functioning of different sectors in
an economy, their dynamics, the problems arising in those sectors and also on the potential
solutions for addressing such problems (Holland 2018).
In the conceptual framework of economics, a market is defined to be the forum where
the buyers and sellers of different commodities and services interact with one another to
decide on the price and quantity of the same. There exist different forms of markets in
economics, differing in the aspects of the number of participants, the goods and services,
competition level and barriers of entry and exit (Ehrenberg and Smith 2016). The primary
ones are monopoly market, perfectly competitive market, oligopoly market and
monopolistically competitive market, each of which are found to have relevance with the
markets or industries prevailing in the global economic scenario.
In this context, the report tries to analyse the type of market structure which prevails
in the banking and financial industry of Australia and the dynamics and issues experienced in
the same due to their inherent market structure and characteristics. To view the same, the
report refers to the article, “Australia's competition watchdog to review banking oligopoly”,
published on April, 2018, in the Reuters (Reuters.com 2018).
Summary of the Article
The article sheds light on the recent decision of the Australian Competition and
Consumer Commission to review the presence or absence of competition in the banking
sector of the country by observing and analysing the market power enjoyed by the big four