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
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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 â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦ 16
Appendix II â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦.. 17
Appendix III â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦.â¦â¦â¦. 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...