MARKET STRUCTURE: OLIGOPOLY

ECONOMICS PROJECT
SHARVIE JAIRATH 1st Year B.A. LL.B Enro !ent No. : "##1$%"&'"(

Market
Most )eo) e *o+ , sa- ..a !ar/et 0s a ) a1e *2ere eno+32 4+-ers an, se ers !eet5 so t2at a market price 6or a 3oo, or ser701e 1an 4e ,eter!0ne,... Ho*e7er5 *0t2 t2e ra)0, 3ro*t2 o6 te e1o!!+n01at0ons5 0t 0s no on3er ne1essar- 6or 4+-ers an, se ers to )2-s01a - !eet to 6or! a !ar/et. T2e Internet 0s t2e 6astest 3ro*0n3 !ar/et 0n t2e *or , to,a-5 -et 4+-ers an, se ers ,on.t e7en 2a7e to ea7e t2e0r o*n 2o!es to transa1t 4+s0ness.

Different types of Market Structures include:

1. 8. &. #. %. $. 9. P+re 1o!)et0t0on P+re !ono)o Mono)sonMono)o 0st01 1o!)et0t0on O 03o)o O 03o)sonPr01e ,0s1r0!0nat0on

E1ono!0sts +s+a - ta / a4o+t t2e 6o o*0n3 6o+r !a:or !ar/et str+1t+res:

P+re; Per6e1t 1o!)et0t0on P+re !ono)o Mono)o 0st01 1o!)et0t0on O 03o)o -

T2e s1o)e o6 t2e )resent st+,- 0s 0!0te, to OLIGOPOLY. Ho*e7er5 ea12 o6 t2ese 1an 4e re)resente, 0n t2e 6or! o6 a model5 s0!) 060e, re)resentat0ons o6 rea 0t-. So!e !ar/ets !a- 1onta0n 12ara1ter0st01s o6 t*o o6 t2ese !ar/et t-)es. T2e 4o+n,ar0es 4et*een t2e t-)es 1an 4e ..4 +rre,... An Oligopolistic !ar/et 0s one *2ere t2e !ar/et 0s ,o!0nate, 4- a s!a n+!4er o6 60r!s; se ers <+s+a - +n,er ten = O 03o)o 0sts> *2o are 2032 - sens0t07e to ea12 ot2er?s )r010n3 an, !ar/et0n3 strate30es. T2ese 60r!s 3a0n t2e !a:or0t- o6 tota sa es re7en+e. T2e 60r!s 0n O 03o)0es are sa0, to 4e mutually interdependent. I6 one 60r! 12an3es 0ts )r01es5 t20s *0 2a7e an e66e1t on t2e sa es o6 a ot2er 60r!s 0n t2e !ar/et. T2e *or, o 03o)o - 0s ,er07e,5 4- ana o3- *0t2 @!ono)o -@5 6ro! t2e Gree/5 olgoi !ean0n3 .6e*. an, poleein !ean0n3 .to se ..

Features of oligopolistic markets: 1> On - a 6e* 60r!s s+)) - t2e ent0re !ar/et *0t2 a )ro,+1t t2at !a- 4e stan,ar,0Ae,; 2o!o3eneo+s or ,066erent0ate,. As 0n !ono)o 0st01 1o!)et0t0on5 60r!s 0n an O 03o)o 0st01 !ar/et se s0!0 ar 3oo,s an, ser701es5 *2012 are 1 ose s+4st0t+tes5 an, t2+s price sensitive. 8> At east so!e 60r!s 2a7e ar3e !ar/et s2ares an, t2+s 1an 0n6 +en1e t2e )r01e o6 t2e )ro,+1t. &> T2e 60r!s 0n t2e o 03o)o 0st01 0n,+str- are a*are o6 t2e0r 0nter,e)en,en1e an, a *a-s 1ons0,er t2e0r r07a s? rea1t0ons *2en se e1t0n3 )r01es5 o+t)+t 3oa s5 a,7ert0s0n3 4+,3ets5 an, ot2er 4+s0ness )o 010es. Be1a+se o6 6e* se ers5 0t 0s ,06601+ t 6or ne* se ers to enter t2e !ar/et. Ea12 se er 0s a ert to 1o!)et0tor?s strate30es an, !o7es. #> T2e ,e!an, 1+r7e 6a1e, 4- an o 03o)o 0st01 60r! re)resents ,066erent B+ant0t0es o6 o+t)+t t2at t2e 60r! 1an se at ,066erent )r01es. T2ese B+ant0t0es 1annot 4e ,e60n0te ,eter!0ne, 4e1a+se t2e B+ant0t0es *0 4e ,066erent ,e)en,0n3 on t2e ,066erent rea1t0on )atterns o6 t2e r07a s. C2en an- 60r! 12an3es 0ts o*n )r01e5 r07a s *0 a so 12an3e t2e0r )r01es an, as a res+ t t2e ,e!an, 1+r7e 6a1e, 4- an o 03o)o 0st 60r! oses 0ts ,e60n0teness.

Oligopoly Market !amples

I> OP " #Organi$ation of Petroleum !porting "ountries% 0s a )er!anent5 0nter= 3o7ern!enta or3an0Aat0on5 esta4 0s2e, at t2e Ba32,a, Con6eren1e 2e , 0n IraB5 1"=1# Se)te!4er 1($". Its o4:e1t07e 0s to 1oor,0nate an, +n06- )etro e+! )o 010es a!on3 Me!4er Co+ntr0es5 0n or,er to se1+re a stea,- 0n1o!e to t2e )ro,+10n3 1o+ntr0es5 an e66010ent5 e1ono!01 an, re3+ ar s+)) - o6 )etro e+! to 1ons+!0n3 nat0onsD an, a 6a0r ret+rn on 1a)0ta to t2ose 0n7est0n3 0n t2e )etro e+! 0n,+str-.

OPEC a1t0n3 as o 03o)o - 0n )etro e+! 0n,+str- 2as 0!)a1te, t2e e1ono!- o6 *or , 1o+ntr0es. OPEC 2as )ro7en to 4e one o6 t2e !ost )ros)ero+s an, e66e1t07e 0n,+str0a !ono)o - a 0an1es t2e *or , 2as /no*n. Not*0t2stan,0n3 OPEC.s s+11ess as a !ar/et 1ontro 0n3 )o*er5 non1o!) 0an1e an, 12eat0n3 4- !e!4ers 2a7e 1a+se, so!e )ro4 e!s a on3 t2e *a-. T2+s5 0n or,er 6or a 1arte to s+11ess6+ - 1ontro a !ar/et5 t2ere !+st 4e 1o!) ete 1oo)erat0on an, tr+st a!on3 !e!4ers. OPEC.s 20stor- eEe!) 060es an, s+))orts t20s state!ent. In 1(9& an, 1(9#5 a o6 OPEC.s !e!4er nat0ons *or/e, to3et2er +n,er t2e )ara!eters esta4 0s2e, 4- t2e or3an0Aat0on5 an, 0n t+rn5 *ere a4 e to ra0se t2e )r01e o6 o0 6o+r=6o ,. Contrar0 -5 0n 1((%5 OPEC set a )r01e tar3et o6 t*ent-=one ,o ars5 4+t as a res+ t o6 ,e1e)t0on an, a a1/ o6 tr+st a!on3 !e!4er states5 so!e !e!4ers eE1ee,e, t2e0r B+otas an, t2e o7er=)ro,+1t0on an, 1onseB+ent 6 oo,0n3 o6 t2e !ar/et 1a+se, t2e )r01e to 6a *e 4e o* t2e t*ent-=one ,o ar 3oa . St0 5 ,es)0te ,e70o+s a1t0ons 4- so!e !e!4ers ta/0n3 a,7anta3e o6 t2e or3an0Aat0on5 OPEC 1ont0n+es to 2o , s*a- o7er t2e tra,0n3 o6 )etro e+! 3 o4a -. OPEC 4e1a!e o 03o)o 0st5 4e1a+se o6 0ts 1o!)et0tors. II> A 6e*5 ar3e 60r!s ,o!0nate !an- A+stra 0an !ar/ets. T2e grocery market in &ustralia 0s an o 03o)o -. 'ool(ort)s and "oles ,o!0nate t20s !ar/et5 nat0ona -. T2ese 1o!)an0es 2a7e eEtens07e ,0str04+t0on s-ste!s5 *0t2 stores 0n !ost +r4an an, re30ona areas a1ross A+stra 0a. To 1o!)ete *0t2 t2ese 60r!s *o+ , reB+0re a ar3e 0n7est!entD 0n t2e 40 0ons o6 ,o ars5 1onser7at07e -. III> T2e te e1o!!+n01at0ons !ar/et 0n A+stra 0a *as on1e a monopolyD a te e1o!!+n01at0ons ser701es *ere )ro70,e, 4- Te e1o! A+stra 0a. In t2e 1((".s5 t2e 6e,era 3o7ern!ent a o*e, Optus to 1o!!en1e tra,0n3 0n t2e !ar/et5 *2012 *as t2en 1a e, a Duopoly. T2+s5 a tr+e Duopoly 0s a specific type of Oligopoly *2ere t*o )ro,+1es; se ers eE0st 0n one !ar/et. In rea 0t-5 t20s ,e60n0t0on 0s 3enera - +se, *2ere on - t*o 60r!s 2a7e ,o!0nant 1ontro o7er a !ar/et. IV> In India *e 2a7e t2e o 03o)o - !ar/et 0n a+to!o40 es *2ere ea12 3ro+)= 1ars5 s1ooters5 tr+1/s F 0s an o 03o)o - !ar/et. Go!est01 a0r 0nes5 re6r03erators5 T.V sets5 a0r 1on,0t0oners are so!e eEa!) es o6 o 03o)o - !ar/ets 0n In,0a. E1ono!0sts !eas+re t2e seller concentration ratio o6 an 0n,+str- to ,eter!0ne *2et2er 0t 0s an o 03o)o -. Se er 1on1entrat0on rat0os are 4ase, on t2e )er1enta3e o6 sa es o6 t2e 6o+r ar3est 60r!s 0n t2e !ar/et5 as a )er1enta3e o6 a sa es 0n t2e !ar/et. T20s rat0o 0s t2en 1o!)are, to t2e tota sa es o6 t2e t*ent- ar3est 60r!s 0n t2e !ar/et. T2e se er 1on1entrat0on rat0o 0n t2e 3ro1er- !ar/et 0s a4o+t '"HD t2e 6o+r ar3est 60r!s <Coo *ort2s5 Co es5 Iran/ 0n.s5 Ga70,s> a11o+nt 6or '"H o6 a 3ro1er- sa es 0n A+stra 0a.

Oligopoly Models
*+ ,on-collusive Oligopoly

It ass+!es a 1erta0n )attern o6 rea1t0on o6 1o!)et0tors ,es)0te t2e 6a1t t2at t2e eE)e1te, rea1t0on ,oes not !ater0a 0Ae5 0.e.5 t2e 60r!s 1ont0n+e to ass+!e t2at t2e 0n0t0a ass+!)t0on 2o ,s 3oo,. .+ "ollusive Oligopoly

In or,er to a7o0, +n1erta0nt- ar0s0n3 6ro! o 03o)o 0st01 0nter,e)en,en1e5 t2e o 03o)o 0st !a- enter 0nto 1o +s07e a3ree!ents. T2ere are t*o !a0n t-)es o6 1o +s0ons: "artels an, Price Leaders)ip. "artels: Carte s 0!) - ,0re1t a3ree!ent a!on3 1o!)et0n3 O 03o)o 0sts. T2e 60r!s 0n 1arte o)erate *0t2 t2e a0! o6 re,+10n3 +n1erta0nt- an, !aE0!0A0n3 :o0nt )ro60ts. To a120e7e t20s o4:e1t07e5 t2e 1arte 60r!s a))o0nt a 1entra a3en1-5 *2012 ,e10,es not on t2e tota B+ant0t- an, t2e )r01e 4+t a so t2e a o1at0on o6 )ro,+1t0on a!on3 t2e !e!4ers o6 t2e 1arte an, ,0str04+t0on o6 )ro60ts a!on3 t2e!. It 0s ass+!e, t2at a 1arte !e!4ers )ro,+1e 0,ent01a )ro,+1ts. T2e t-)01a 6or!s o6 1arte s are: 1arte s a0!0n3 at :o0nt )ro60t !aE0!0Aat0on 0.e !aE0!0Aat0on o6 0n,+str- )ro60ts5 an, 1arte s a0!0n3 at s2ar0n3 o6 t2e !ar/et.

/)e "artel Model A 1arte 0s a 1o!40nat0on o6 60r!s t2at a1ts as 0t *ere a s0n3 e 60r!. A 1arte 0s a s2are, !ono)o -. I6 o 03o)o 0es 1an 0!0t t2e entr- o6 ot2er 60r!s an, 6or! a 1arte 5 t2e- 1an 0n1rease t2e )ro60ts 3o0n3 to t2e 60r!s 0n t2e 1arte . O 03o)o 0es a1t as 06 t2e- *ere !ono)o 0sts t2at 2a7e ass03ne, )ro,+1t0on;se 0n3 B+otas to 0n,070,+a !e!4er 60r!s5 so t2at tota )ro,+1t0on; sa es are 1ons0stent *0t2 :o0nt )ro60t !aE0!0Aat0on. In t2e 1arte !o,e 5 an o 03o)o - 6a1es !ar/et ,e!an, an, )ro,+1e on - +) to t2e )o0nt at *2012 !ar30na re7en+e an, !ar30na 1ost are eB+a <MR J MC>5 an, t2e )r01e 0s set a4o7e t2e !ar30na 1ost *2012 4e1o!es a !ono)o - )r01e. See!0n3 - 0n,e)en,ent5 4+t )ara e a1t0ons a!on3 1o!)et0n3 60r!s <!ost O 03o)o 0st01> 0n an 0n,+str- so!e t0!es ea, to Implicit Price "ollusion s1enar0o. A so ter!e, tacit collusion5 t2e ,0st0n3+0s20n3 6eat+re o6 0!) 010t 1o +s0on 0s t2e a1/ o6 an- eE) 010t a3ree!ent. T20s 0s one o6 t*o t-)es o6 1o +s0on. T2e ot2er 0s eE) 010t or o7ert 1o +s0on5 *2012 0n7o 7es an eE) 010t a3ree!ent.

T2e /e- 0s t2at ea12 60r! see!s to 4e a1t0n3 0n,e)en,ent -5 )er2a)s ea12 res)on,0n3 to t2e sa!e !ar/et 1on,0t0ons. T20s 6or! o6 ta10t 1o +s0on ,e)en,s on t2e !+t+a 0nter,e)en,en1e a!on3 O 03o)o 0st01 60r!s an, t2e 0nt0!ate /no* e,3e ea12 2as o6 t2e ot2ers. T20s 0s t2e sort o6 0n6or!at0on t2at on - res+ ts 6ro! -ears o6 competition. A 3oo, ana o3- 0s t*o )ro6ess0ona tenn0s ) a-ers *2o 2a7e 1o!)ete, a3a0nst ea12 ot2er s0n1e 120 ,2oo,. Ea12 ) a-er /no*s t2e stren3t2s an, *ea/nesses o6 t2e ot2er. Ea12 1an ant010)ate t2e a1t0ons o6 t2e ot2er. S0!0 ar -5 I0r!s t2at 2a7e en3a3e, 0n -ears o6 1o!)et0t0on 1an a so 1o!e to ant010)ate t2e a1t0ons o6 t2e ot2er 60r!s ea,0n3 to I!) 010t Pr01e 1o +s0on. Ior!a 1o +s0on 0s 0 e3a 0n t2e U.S. *20 e 0n6or!a 1o +s0on 0s )er!0tte,. A t2o+32 OPEC 1ontro s a s!a er )ort0on o6 *or , )ro,+1t0on to,a-5 OPEC )ro,+1t0on restr01t0ons *ere an 0!)ortant 6a1tor ,+r0n3 a s+4stant0a 0n1rease 0n *or , o0 )r01es 0n 1((( an, 8""". In an- 1arte 5 s+11ess 0n t2e s2ort r+n sets 0n !ot0on e7ents *2012 !a/e !a0nta0n0n3 s+11ess near - 0!)oss04 e. A s+11ess6+ 1arte ra0ses )r01es *2012 en1o+ra3e 1ons+!ers to 1+t ,e!an, an, )otent0a )ro,+1ers to enter t2e !ar/et. T2e s+11ess o6 OPEC tr033ere, 1onser7at0on5 s+4st0t+t0on5 an, ne* )ro,+1t0on 0n t2e o0 0n,+str-. /)e Price-Leaders)ip Model In t20s 6or! o6 o 03o)o -5 one 60r! ,o!0nates an 0n,+str- an, a t2e s!a er 60r!s 6o o* t2e ea,er?s )r010n3 )o 01-. T2e )ro,+1t0on tar3et o6 t2e ea,er 0s ,er07e, 4- s+4tra1t0n3 6ro! tota !ar/et ,e!an, t2e a!o+nt o6 ,e!an, t2at t2e s!a er 60r!s 1an !eet at ea12 )otent0a )r01e. &ssumptions of t)e Price-Leaders)ip model: T2e 0n,+str- 2as one ar3e 60r! 1a e, ea,er an, !an- s!a er 60r!s 1a e, 1o!)et0t07e 60r!s. T2e ea,er !aE0!0Aes )ro60t s+4:e1t to 1onstra0nt o6 !ar/et ,e!an, an, 4e2a70or o6 s!a er 60r!s.

T2e ea,er a o*s t2e s!a er 60r!s to se a t2e0r )ro,+1e at t2e )r01e set 4- t2e ea,er.

0+

"ournot1s Model of Duopoly

It 0s s)e10a 1ase o6 o 03o)o - *2ere t2ere are on - t*o se ers 4+t a ar3e n+!4er o6 4+-ers. Duopoly is 2ased on t)e follo(ing assumptions: 1. T2ere are t*o se ers5 ea12 se 0n3 a 2o!o3eneo+s 3oo,. 8. T2ere are ar3e n+!4ers o6 4+-ers 0n t2e !ar/et. &. Bot2 t2e ,+o)o 0sts 2a7e 0,ent01a 1ost 1+r7es an, ea12 2as a Aero 1ost o6 )ro,+1t0on. #. Bot2 t2e 60r!s see/ to !aE0!0Ae 0ts )ro60t. %. Ea12 ,+o)o 0st !a/es an o+t)+t ) an 6or a )er0o, an, ta/es t2e o+t)+t o6 t2e ot2er as 307en. Ne0t2er sets t2e )r01e 4+t ea12 a11e)ts t2e )r01e o6 20s )ro,+1t at *2012 tota ) anne, o+t)+t 1an 4e so ,. A t2o+32 t20s !o,e 0 +strates 0nter,e)en,en1e5 4+t t2e t*o G+o)o 0sts <60r!s> rea1t ONLY a6ter t2e 6a1t an, ne7er ant010)ate t2e 1o!)et0tor?s !o7es. Game /)eory: To o7er1o!e t2e a4o7e s2ort 1o!0n3s t2e 60r!s 0n t2e o 03o)o - +se strate301 ,e10s0on !a/0n3 an, enter 0n Price 'ars. Most O 03o)o 0sts ta/e strate301 )r01e ,e10s0ons 4- !a/0n3 +se o6 3a!e t2eor-. In 3a!e t2eor-5 6or a 1on6 01t0n3 s0t+at0on <0.e 3a!es>5 t2ere are ,e10s0on !a/ers <or ) a-ers>5 r+ es o6 t2e 3a!e5 an, )a-o66s <)r0Aes>. P a-ers 12oose strate30es *0t2o+t /no*0n3 *0t2 1erta0nt- *2at strate3- t2e o))os0t0on *0 +se. T2e )r0soner?s ,0 e!!a 0s a *e =/no*n 3a!e t2at ,e!onstrates t2e ,06601+ t- o6 1oo)erat07e 4e2a70or 0n 1erta0n 10r1+!stan1es. T2e 3a!e t2eor- ea7es +s *0t2 a 3reater +n,erstan,0n3 o6 t2e )ro4 e! o6 o 03o)o - 4+t *0t2 an 0n1o!) ete an, 0n1on1 +s07e set o6 )ro)os0t0ons a4o+t t2e 0/e - 4e2a70or o6 o 03o)o 0st01 60r!s. Ce 3et 0nterest0n3 1on1 +s0ons a4o+t a 6a0r - s!a n+!4er o6 s)e10601 3a!e 10r1+!stan1es5 4+t 3a!e t2eor- ,oes not )ro70,e !+12 2e ) *0t2 an 0n,+str- o6 607e 60r!s5 ea12 s0!+ taneo+s - 12oos0n3 )ro,+1t5 )r010n35 o+t)+t5 an, a,7ert0s0n3 strate30es. C0t2 t20s *e rea12 a s1enar0o *0t2 1erta0nt- o6 0nter,e)en,en1e. 3+ /)e 4inked Demand "urve Model

In an o 03o)o -5 60r!s o)erate +n,er 0!)er6e1t 1o!)et0t0on an, a /0n/e, ,e!an, 1+r7e *2012 re6 e1ts 0ne ast010t- 4e o* !ar/et )r01e an, e ast010t- a4o7e !ar/et )r01e5 t2e )ro,+1t or ser701e 60r!s o66er are ,066erent0ate, an, 4arr0ers to entr- are stron3. Io o*0n3 6ro! t2e 60er1e )r01e 1o!)et0t07eness 1reate, 4- t20s st01/-=+)*ar, ,e!an, 1+r7e5 60r!s +t0 0Ae non=)r01e 1o!)et0t0on 0n or,er to a11r+e 3reater re7en+e an, !ar/et s2are. 54inked5 demand curves are s0!0 ar to tra,0t0ona ,e!an, 1+r7es5 as t2e- are ,o*n*ar,=s o)0n3. T2e- are ,0st0n3+0s2e, 4- a 2-)ot2es0Ae, 1on7eE 4en, *0t2 a ,0s1ont0n+0t- at t2e 4en, = t2e @/0n/@. T2ere6ore5 t2e 60rst ,er07at07e at t2at )o0nt 0s +n,e60ne, an, ea,s to a :+!) ,0s1ont0n+0t- 0n t2e !ar30na re7en+e 1+r7e.

&2ove t)e kink5 ,e!an, 0s re at07e - e ast01 4e1a+se a ot2er 60r!s. )r01es re!a0n +n12an3e,. 6elo( t)e kink5 ,e!an, 0s re at07e - 0ne ast01 4e1a+se a ot2er 60r!s *0 0ntro,+1e a s0!0 ar )r01e 1+t5 e7ent+a - ea,0n3 to a )r01e *ar. T2ere6ore5 t2e 4est o)t0on 6or t2e o 03o)o 0st 0s to )ro,+1e at )o0nt E5 *2012 0s t2e e7uili2rium point an,5 0n10,enta -5 t2e kink point. &ssumptions of t)e kinked demand model: 1> T2ere are !an- 60r!s 0n t2e o 03o)o 0st01 0n,+str-. 8> Ea12 60r! )ro,+1es a )ro,+1t *2012 0s a 1 ose s+4st0t+te 6or t2at o6 t2e ot2er 60r!. &> Pro,+1t B+a 0t0es are 1onstant5 a,7ert0s0n3 eE)en,0t+res are Aero.

#> Ea12 o 03o)o 0st 4e 0e7es t2at 06 2e o*ers t2e )r01e o6 20s )ro,+1t5 20s r07a s *0 a so o*er t2e )r01es o6 t2e0r )ro,+1ts an, t2at 06 2e ra0ses t2e- *0 !a0nta0n t2e )r01es at t2e eE0st0n3 e7e s. C ass01a e1ono!01 t2eor- ass+!es t2at a )ro60t=!aE0!0A0n3 )ro,+1er *0t2 so!e !ar/et )o*er <e0t2er ,+e to o 03o)o - or !ono)o 0st01 1o!)et0t0on> *0 set !ar30na 1osts eB+a to !ar30na re7en+e. T20s 0,ea 1an 4e en70s0one, 3ra)201a - 4- t2e 0nterse1t0on o6 an +)*ar,=s o)0n3 !ar30na 1ost 1+r7e an, a ,o*n*ar,=s o)0n3 !ar30na re7en+e 1+r7e <4e1a+se t2e !ore one se s5 t2e o*er t2e )r01e !+st 4e5 so t2e ess a )ro,+1er earns )er +n0t>. In 1 ass01a t2eor-5 an- 12an3e 0n t2e !ar30na 1ost str+1t+re <2o* !+12 0t 1osts to !a/e ea12 a,,0t0ona +n0t> or t2e !ar30na re7en+e str+1t+re <2o* !+12 )eo) e *0 )a6or ea12 a,,0t0ona +n0t> *0 4e 0!!e,0ate - re6 e1te, 0n a ne* )r01e an,;or B+ant0t- so , o6 t2e 0te!. T20s res+ t ,oes not o11+r 06 a @/0n/@ eE0sts. Be1a+se o6 t20s5 :+!) ,0s1ont0n+0t- 0n t2e !ar30na re7en+e 1+r7e5 !ar30na 1osts 1o+ , 12an3e *0t2o+t ne1essar0 - 12an30n3 t2e )r01e or B+ant0t-.

T2e !ot07at0on 4e20n, t20s /0n/ 0s t2e 0,ea t2at 0n an o 03o)o 0st01a - or !ono)o 0st01a 1o!)et0t07e !ar/et5 60r!s *0 not ra0se t2e0r )r01es 4e1a+se e7en a s!a )r01e 0n1rease *0 ose !an- 1+sto!ers. Ho*e7er5 e7en a ar3e )r01e ,e1rease *0 3a0n on - a 6e* 1+sto!ers5 4e1a+se s+12 an a1t0on *0 4e30n a )r01e *ar *0t2 ot2er 60r!s. T2e 1+r7e 0s5 t2ere6ore5 !ore )r01e=e ast01 6or )r01e 0n1reases an, ess so 6or )r01e ,e1reases. I0r!s *0 o6ten enter t2e 0n,+str- 0n t2e on3 r+n. Co!)et0t0on 0n an o 03o)o 0st01 !ar/et 0s 0ntense. Bot2 )r01e an, non=)r01e !et2o,s o6 1o!)et0t0on are +se,. Yo+ 2a7e )ro4a4 - seen5 rea, or 2ear, a,7ert0se!ents a on3 t2ese 0nes ... ..Ce *0 not 4e 4eaten on )r01e. I6 o+r 1o!)et0tor 0s se 0n3 0te! K 6or ess5 *e

*0 !at12 t2e0r )r01es5 *2et2er t2e 0te!.s )r01e 2as 4een re,+1e, 6or a s)e10a sa e or not... I0r!s 0n o 03o)o 0es 1o!)ete 4- o66er0n3 *arrant0es <..Ce *0 re) a1e t2e 0te! *0t2o+t 1ost 06 0t 0s 6o+n, to 4e ,e6e1t07e 0n an- *a-..>5 an, t2ro+32 ..1+sto!er ser701e <..6r0en, -5 2e )6+ sta66.. an, ..6ree 2o!e ,e 07er-.. are t*o>. Coo *ort2.s 2as 4een )art01+ ar s+11ess6+ 0n 0t.s ..Ce.re t2e 6res2 6oo, )eo) e.. a,7ert0s0n3 1a!)a03n. "onclusion T2+s *e 1on1 +,e5 o 03o)o - 0s a !ar/et str+1t+re t2at 0s 1ons0stent *0t2 a 7ar0et- o6 4e2a70ors.