Indian Railway Monopoly Case Study

The primary monopolies in India are government monopolies of utilities and transportation. One specific example is the government monopoly of rail transportation through Indian Railway: Lifeline to the Nation (IR). Interestingly, IR has recently proposed to change its method of purchasing electrical power from energy suppliers to a "bidding process at economical tariff." A monopoly has no competitor, there is no substitute, and there is restricted entry to the market. In the case of IR, entry is restricted by the government.

A monopolistic competition is represented by the synthetic fiber production market in India. While there are many firms that manufacture synthetic fiber, such as Sky Industries and Sumeet Ind, Zenith Fibres Ltd is the only one to produce "Polypropylene Staple Fibre (PPSF) used as raw material in 100% PP Yarn. ... and they are the only manufacturer of this product in India with 100% market share" (Rajesh Bihani). This exclusivity of product positions Zenith in a monopolistic competition.

An oligopoly is a market in which a few powerful firms dominate over minor entrants. In India, the airways represent an oligopoly, with a few competitors having the greatest market shares. Two of the top airlines are IndiGo and Air India and, while there are other airlines that provide specialized services, the major competitors rule the industry relevant to domestic air transportation market share in India ("AIRLINE COMPETITION" 2014):

  • IndiGo airline: 29.5% market share
  • Jet Airways (India): 22.5% market share
  • Spike Jet: 19.8% market share
  • Air India (Domestic): 19.1% market share
  • Go Air: 9.0% market share

- Предложение. - Да. Я могу прямо сейчас отвести вас в участок… - Беккер выразительно замолчал и прищелкнул пальцами. - Или?.

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