Analysis of Changes in Selected Market Structures in Relation to Economic Success

Jiri Kraft

Abstract


Advanced market economies have not developed very successfully in recent years. The reason may lie in the inappropriate application of economic theory conclusions by authors of economic policies and likewise on the economic theory side, assuming that it draws inadequate conclusions for the current economic reality.

The answer to the question of whether either of the above causes is relevant may be demonstrated in the phenomenon of market structures and their changes stimulated, inter alia, by the reality of economic integration. On the basis of a logical consideration of facts supported by graphic analysis, the following conclusion can be drawn: The changes in the economic reality on the side of the dominant oligopolies as well as on the side of the competitive fringe have not yet changed the conclusions formulated by economic theory for the reality of the 1960s. Reviewing these theoretical economic conclusions and their adequacy for the current economic reality and the decision on whether the current economic policy should follow them are crucial. However, the example of the application of economic policy by the European Union and the Czech Republic – support for SMEs with the aim to increase the competition level – cannot be used for an a priori statement of inadequacy, neither on the application side nor on the economic policy formulation side.

Problems in economic development may however be caused by the entity called the “extent of thing”. On the other hand, the fact that a minor problem was not found to be faulty, as shown by this article, does not mean that mistakes are not made in other, possibly more economically relevant, circumstances.

DOI: http://dx.doi.org/10.5755/j01.ee.27.1.9734


Keywords


oligopoly, monopoly, competition, dominant company, competitive fringe

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Print ISSN: 1392-2785
Online ISSN: 2029-5839