Oligopolies
In a time where market concentration in the majority of industries is on the rise, it is essential that regulators m onitor competition levels tomake certain that consumers’ welfare is protected, innovation can thrive, and firms can be as efficient as possible. That is not to say that in oligopolies, only the latter of these objects is achievable, however the traditional economic theory of the firmmaintains that a firm is a single unit with a single objective – profit maximization – and in oligopolies, consumers are price and wage rate takers meaning the only players preventing the exploitation of consumers are governments. Through the methods considered, such as increases in M and A regulation by lowering the HHI threshold for permitted mergers, regulatory fines and the dissolution of hostile quasi- monopolistic corporations, prices will be certain and fair, markets will remain competitive for the good of the economy, and consumers’ wages are less likely to be squeezed in oligopsonistic labour markets.
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