Tacit Oligopoly of the First Supermarkets of Bogor Essay

Prolonged Essay in Economics

Tacit Oligopoly with the Original Supermarkets of Bogor

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Abstract

The grocery marketplace of Bogor has been facing a significant modify during the past several years. Sudden beginning of new suppliers has more than doubled the quantity of existing grocery stores. I took interest with the fact that despite of the sudden increase in the quantity of suppliers, right now there never was obviously a price reduce. This signifies that the marketplace is experiencing Over Supply.

I decided to investigate if the strain caused by the above supply include changed a certain part of the marketplace structure of the supermarkets of Bogor. I actually took a keen interest by whether the original supermarkets of Bogor form a tacit oligopoly to compete against new rivals.

My first step was to look into whether the supermarkets shows qualities of an oligopoly. Several factors are obvious; the number of firms in the market is usually small , all their size is comparatively big, their products are slightly differentiated, as well as the entry barriers are excessive. To further improve my claim concerning the obstacle, I have analyzed a small portion of two legal documents that concerns beginning a supermarket business. After, I have registered product rates and performed statistical evaluation to determine if the price range is narrow. I then compare the costs of the new supermarkets and all the grocery stores of Bogor as a whole.

The actual result shows that indeed there is an oligopoly; but it reaches up to reach the modern supermarkets. Therefore the original grocery stores have not seperated themselves to attempt gain organization power (e. g. in pricing). New questions happen to be formed based upon the benefits. Among them is whether the oligopoly intentional or perhaps has competition with other suppliers, e. g. the traditional marketplaces, caused the cost range to get limited? These kinds of questions need further studies that are prone to orientate towards the Business Research disciplines.

Term Count: 295

Table of Contents

Abstract 1

Table of Material 2

Component 1: An Introduction to the Essay3

Part 2: The Present Market Profile5

Component 3: Overview of Relevant Theories7

Part 5: Hypothesis and Methodology of Research 10

Part a few: Data Collection and Research 12

Component 6: Conclusion and Evaluation 17

Bibliography 18

Appendix 1____ 19

Appendix 2 20

Appendix 3 21

Acknowledgements twenty two

Part one particular:

An Introduction for the Essay

Bogor is a minor metropolis that is founded over two centuries back, thus chances are it is well known by their surrounding urban centers and neighborhoods. The city began as a centre of transact for community agricultural industries (Encarta). As being a citizen of the city ever since birth, I understand well the grocery market of the town is massive. The great and well-known open air flow market of fresh makes called Derivar Bogor (or ‘the Industry of Bogor'), numerous small grocers, five notable grocery stores, and the easily accessible shopping centers in Jakarta have supplied the family unit demands with the 3, 696, 848 residents residing in Bogor (the figure was recorded for a 1997 census) (Encarta). The market status, however , took a significant switch during the last a decade. Numerous fresh suppliers moved into the market; among them are just as much as five fresh supermarkets (doubling the present number), two hypermarkets, and two new mini-market chains. Among the list of very basic concepts taught to economics college students is the Industry Equilibrium law. It states that the demand and supply of the product is dependent of the selling price level. The consumers...

Bibliography: 1). " Bogor. " MicrosoftВ® Scholar 2006 [CD]. Redmond, WA: Microsoft company Corporation, 2005.

3). Glanville, Alan. Economics from a worldwide Perspective. Oxford: Glanville Ebooks, 2003.

7). Urban, Paul, et al. Mathematics for the Intercontinental Student: Math concepts HL (Core). Adelaide: Haese & Harris Publications, 2005.

I would like to credit:

Onomastica Gultom, because my Prolonged Essay manager, Economics tutor, and IB Coordinator (2007-2008).

Kale Hanson, as my own IB Planner (2006-2007).

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