what market structure exemplifies airline transport over dar-es-salaam, kilimanjaro route

Essay by saheelHigh School, 12th gradeB, November 2014

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WHAT MARKET STRUCTURE EXEMPLIFIES AIRLINE TRANSPORT OVER THE DAR ES SALAAM, KILIMANJARO ROUTE? Economics Extended Essay Word count: 3992

Daniel Gaudence

Candidate number: 000032 - 0013

International School Moshi

Daniel Gaudence Candidate number: 000032 - 0013

1

Contents Abstract .................................................................................................................................................. 2

Chapter I

Introduction ........................................................................................................................................ 3

Hypothesis & Methodology ............................................................................................................... 4

Chapter II (literature review)

Market structure and market power .................................................................................................. 5

Monopoly ............................................................................................................................................ 5

Sources of monopoly power & efficiency in monopolistic industries ............................................... 6

Monopolistic competition & efficiency in monopolistic competition .............................................. 7

Perfect competition............................................................................................................................. 8

Efficiency in perfectly competitive markets. ...................................................................................... 9

The constitution of an oligopoly & duopoly .................................................................................... 10

Oligopolies, price completion & efficiency in oligopolies ................................................................ 11

Chapter III (Analysis & evaluation)

Ease of entering and exiting the market ........................................................................................... 13

Comparative checklist ....................................................................................................................... 14

Conclusion

Limitations & issues for consideration ............................................................................................ 15

Appendices:

Appendix I ……………………………………………………………………………………………………………………………… 16

Appendix II …………………………………………………………………………………………………………………………….. 17

Appendix III …………………………………………………………………………………………………………………….………. 18

Bibliography.......................................................................................................................................... 19

Daniel Gaudence Candidate number: 000032 - 0013

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Abstract

The Dar Es Salaam, Kilimanjaro route has been a route active for more than 40 years. It

facilitates about 14 international and domestic airlines; two of these airlines Precision Air

and Fastjet actively fly on a daily basis over this route shuttling about 6585 passengers a

week. The factors mentioned above raised some questions such as how these firms

compete and on what basis do consumers make decisions on which airline to use. These

aspects on this market led to the basis of this essay and my research question: What market

structure exemplifies airline transport over the Dar-Es-Salaam, Kilimanjaro route?

The research question focuses on the various characteristics of this market and thus it looks

at market structures. Through secondary means of research a literature review will be

assembled that will aid in analysing data acquired...