Discuss how the development of the Internet has changed the market structure in which companies operate. Remember that, we are assuming most firms can be categorized as being in perfect competition, monopolistic competition, oligopoly, or monopoly. Keep in mind, however, that perfect competition exists mostly as an ideal or benchmark, i.e. it is rarely if ever seen in the 'real world.'
Remember to use the criteria by which we categorize firms, e.g. the number of firms in a market, degree of competition, amount of market information available to both sellers and buyers, etc.
Lastly, see if you can use our managerial economic material to measure the impact of the Internet on market structure.
Internet and e-commerce has played an important role in altering the market structure in which companies operate. By redefining the physical boundaries of trade and making entire world a global village, internet has revolutionized market structured and change the definition of various factors such as competition, number of players in an industry, consumer's access to information, ...
Discusses impact of internet on market structure.