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The oil industry (like most), is an oligopoly; that is, there are a small number of companies that compete with each other, but because barriers to entry are high, form a closed club. Competition is reduced further by the fact that most of the world's oil supply is controlled by a cartel (OPEC). The result is an industry that is somewhat competitive, but also sigificantly constrained (there's no such thing as either perfect competition or a perfect monopoly, except in economics textbooks). The verious oil companies probably collude with each other to prevent emergence of alternative energy sources or new entrants, but they are more rivals than allies.
MS, on the other hand has a franchise monopoly on the distribution of Microsoft Windows and Office, and abnormally large market shares for personal computer operating systems, word processors and spreadsheets. It strives to maintain this large market share through any and all feasible means, but principally by restricting interoperability with competing products.
The oil industry is an oligopoly and acts like one; MS is a de-facto monopoly and acts like one. - Posted by: John L. Ries Posted on: 09/15/05 You are currently: a Guest | Members login | Terms of Use
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