Introduction to Economics Docs

Running head: AUSTRALIAN BANKING SECTOR: AN OLIGOPOLISTIC MARKET
Australian Banking Sector: An Oligopolistic Market
Name of the Student
Name of the University
Author Note

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AUSTRALIAN BANKING SECTOR: AN OLIGOPOLISTIC MARKET
Table of Contents
Introduction:....................................................................................................................................2
Story’s Essence:...............................................................................................................................2
Economic Analysis of the Situation:...............................................................................................4
Recommendations:..........................................................................................................................7
Conclusion:......................................................................................................................................7
References........................................................................................................................................9

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AUSTRALIAN BANKING SECTOR: AN OLIGOPOLISTIC MARKET
Introduction:
In economics, the term “market” signifies a place of interaction for the two types of
economic agents, the buyers and the sellers. In other words, a market is the place where the
demand and the supply forces, in terms of their inter-dynamics, determine the price and quantity
aspects of a particular commodity or service. Type of market prevailing for a product, depends
on factors like number of buyers and sellers, the entry exit conditions for economic agents,
market power dynamics and others1. Based on these influencing factors, markets can be
competitive (perfectly competitive being the hypothetical extreme) of imperfectly competitive,
like monopoly, monopolistic competition and oligopoly (monopoly being the opposite of perfect
competition). The assignment tries to analyze the type of market structure prevailing in the
Australian banking industry. For research purposes it takes the article named, “Flush and
Dominant, Australia’s Banks Come Under Pressure”, written by A. Odysseus Patrick, as
reference2.
Story’s Essence:
The article finds that the Australian banking market, four major players in the supply side
categorically rule though having many players, both in the supply side and the demand side. In
1 Rios, Manuel C., Campbell R. McConnell, and Stanley L. Brue. Economics: Principles, problems, and policies.
McGraw-Hill, 2013.
2 A. Nytimes.com, 'Flush And Dominant, Australia’S Banks Come Under Pressure' (Nytimes.com, 2017)
<https://www.nytimes.com/2016/10/15/business/dealbook/australia-banks-under-pressure.html?mcubz=1> accessed
29 August 2017.