11.4 : 과점과 그 불공정한 관행

Oligopolies, a market structure dominated by a few firms, pose challenges to fair competition and consumer welfare. Practices like collusion, price-fixing, market division, predatory pricing, and tying are associated with this market structure.

Collusion involves secret cooperation among competing firms to influence market conditions. For example, major oil-producing nations work together to control oil prices through OPEC.

Price-fixing is another practice where firms agree on specific prices, as seen in the LCD panel case involving companies like LG and Samsung.

Next, market division occurs when competitors agree to divide territories, as observed in the airline industry, where carriers manipulate routes and prices.

Predatory pricing is about setting low prices to eliminate competition, as demonstrated in the legal dispute between Uber and the San Francisco taxi firm Flywheel.

Lastly, tying involves selling two products together, with one not available for sale individually, as seen when Microsoft included Internet Explorer with Windows.

These practices hinder competition, leading to higher prices, limited choices, and reduced innovation.