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What Is The Difference Between At & T And Fast Oligopoly

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Team G3 reviewed the degree of market concentration in the wireless industry of the U.S. from 2011 to 2015. Based on the information provided, we determined that the wireless industry is dominated mainly by four corporations Verizon, AT&T, Sprint and T-Mobile which account for a large majority of the market share. With so few wireless carriers competing, the market is considered a tight oligopoly. As recommended in the provided article from “The Economist”, team G3 agrees with the author that further consolidation of the wireless market wouldn’t provide a more competitive market structure. If the merger of AT&T and T-Mobile were allowed it would result in a newly formed AT&T with nearly a 50% share of the market. The merger would then push the wireless industry into a duopoly between AT&T and Verizon, which would have about 80% of the market between them. The influence of smaller firms like US Cellular and Sprint would continue to diminish and the possibility of a new entrant to the wireless marketplace would be exceedingly more difficult. …show more content…

The merger would give AT&T unbalanced power in the marketplace allowing them to inflate prices, reduce innovation, and ultimately hold customers’ hostage even if they have poor service because of the lack of competition in the industry. These are all strong reasons why the merger should not be allowed.
Table 1 below contains the market concentration in the last quarter of 2015 that we will reference for calculations in the next couple of

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These facts gave the idea of combining the 2 to make one big company instead of losing money from competing constantly.

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A more recent monopoly occurred with AT&T involving the Bell system. The breakup of the Bell System was known as victorious spinoff in American history. This was not the first time that AT&T violated antitrust laws. Not long after the split, AT&T 's name transformed to AT&T Wireless. These operations led to the Sherman Antitrust Act in 1889.

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Verizon is the leader in the market for their cellular services, where their profits are considerably higher than its competitors, yet it falters in comparison to smaller companies, such as boost mobile, in their actual product sales. The gap between two such companies can be minimized, however, as the largest benefit for Verizon to implement vertical integration is to help lower their product costs, due to the ability to mitigate the distribution process, which would increase the volume of products

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Once monopolies form, there is no reason they would not merge to form a multi-market conglomerate . Once collusion is common, it is likely that every business will collude in some way. In Holland, when construction companies started colluding without repercussions from the government, it was almost impossible for a construction firm to make money without being a part of the “cartel” of business who collude. “Individual construction companies that tried to stop this practice by not attending these secret meetings soon learned that their orders greatly diminished and were, therefore, forced to continue their cooperation”4. Therefore not only will there be incentives for unethical business, there will be repercussions from not partaking.

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However, in 1984, the Justice Department brought the civil antitrust suit and AT&T was split into seven parts called Baby Bells. The dispute ended in 1956, and AT&T stayed as a communication service while the others split into different ones. They deliver mobile services, high-speed internet, and solutions for people and

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The combined company would have a global market share of about 40% and annual sales of close to $28 billion, making it by far the world’s largest gases firm. Such high market concentration will have adverse impact on the prices of industrial gases at a time when major buyers, especially in the oil & gas industry, are struggling to recover from oil price debacle. Further rise in concentration will definitely have antitrust authorities scrutinize the merger even more strictly.

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An increase in economic growth itself will cause Bank of America, along with other international banks, to grow. An increase in both local and international entrepreneurship will also benefit the company because entrepreneurs will need a lump sum of money to be able to start a business and getting loans is one of the ways they can obtain that money. Bank of America has been known to merge with other known banks and companies. The majority of mergers and acquisitions are done to improve both the profit and productivity of a certain company; like any industry, one of the main objectives of a company is to reduce expenses, and for the most part, merging is an efficient way to cut costs. “Banks, in part as a response to the weakened performance,

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If providers do decide to take the greedy approach they would greatly prosper from it, “more than half of all Americans have no choice in their provider, and 87 percent of rural Americans have no choice”. If people have no choice of what provider they can have and the prices go up, they can not do anything to get around the prices except for not using internet entirely. Taking away net neutrality is almost like taking away our freedom of speech, most people connect and talk to other people via internet apps like Facebook and Skype. If you take away people’s ability to post their own beliefs and views then you are basically taking that right away if they had it

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Q1a. MARKET STRUCTURE OF APPLE INC Apple Inc. operates different types of market structure in terms of their different products. In the smart phone business, they happen to be one of the major players with their different models of the “iphone” which makes them operate in an oligopolistic market. Oligopoly arises when there is an imperfect competition in which there are just few firms producing similar products. As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products.

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The two firms combined will be the country’s dominant cable and Internet provider. Cohen’s rebuttal to the negative feedback of this news was that Comcast already has competition to worry about such as Amazon, Netflix, and Apple. Cohen is right to the extent that these corporations are giving Comcast some form of competition. But the competition isn’t remotely as effective as having a newly merged company with control of roughly 40 percent of the high-speed broadband Internet market. Cohen mentioned 3 companies that don’t even dabble in the cable business at the current time.

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Many mergers tend to fail and many others succeed. A merger is the combining of assets and operations, usually between two similar sized companies, in an agreement to join together. Mergers can cause bankruptcy, job losses, less choices, and even a breakup. On the other hand, they have many advantages such as, increased market share, lower cost of production, and higher competitiveness. Most mergers can be highly risky but with the presence of knowledge and intuition they can be successful.

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Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.

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In the carbonated soft drinks industry, Coke Cola and Pepsi Co are the biggest players in the market for aerated beverages. Both the companies have been competing strongly against each other for decades. The market is dominated by these two industry leaders with a total market share of 72%; Coke’s market share is 42% and Pepsi’s 30%. This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).

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The formation of a cartel is harmful for other companies on the market as well as for the consumers and that is why forming a cartel is illegal. Most of the time other companies, which are genuinely playing by the rules, are getting overwhelmed and side-lined, because they cannot compete against such a strong cooperating unit. Also, for

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