Lack of competition in the market

Surname 1
Name
Professor
Institution
ECONOMIC ANALYSIS

Surname 2
Lack of competition in the market
According to the article written by Ross Gittins on the competition in Australia,
Competitive pressure is vital in any economic performance but it is fading. The large firms are
dominating the markets and they are pushing prices up, squeezing the suppliers and slowing the
growth in wages and productivity (Rose, 2018). Given the economic size of the Australian
market, we can conclude that large firms are not dominant in the market. The large firms do not
have a large share of the Australian output. The large markets are sometimes highly concentrated
in some markets than in others. Firms in many sectors in Australia are dominated by a few large
firms.
In the recent past, the market shares in the large firms in Australia have not changed on
average. The revenues for the firms have not grown faster than the GDP. The banking sectors
have become more concentrated while other sectors like supermarkets have been less
concentrated (Rose, 2018). On the other hand competition in the Australian market has not been
uniformly strong across the Australian economy. Some firms acquire high profits in some sectors
while in the monopoly sectors, competition is weak. This article suggests that there is a weak
competitive pressure and the economic losses are difficult to identify since they are not
dependent on profits alone but also costs.
The policymakers are supposed to intensify their policies so as to have a conducive
competitive environment. The natural monopoly regulators need to toughen regulations. There is
a need for the competition regulators to continue to focus on preventing the misuse of power.
The government is supposed to reduce the entry barriers and also make it easier for the
consumers to switch between providers and also control their own data.