Analysis of Market Structure and Trends of Property Market

Monday, October 12, 2009

To define about market structure we will take a definition of French Economist, Cournot - “Market in economy is not the place where purchases and sales of a commodity take place.” Till now there are many ways of categorization of market structure but we will discuss here on some basic characters of market.

Number and Size of sellers:

Number of sellers decides the seller’s size. If there are large number of sellers, influence of one firm will be very small. If there is few numbers of sellers in market, every firm will have enough influence over price and supply. Market can be in dominant function if there are enough influence over price and supply.

Number of Size Distribution of buyers:

If there are many buyers, they will pay same price. If there is single buyer, he will be able to demand lower price.

Product Difference:

Product difference is known as the degree at which one product differs from the other in market. If there is differentiation of products, the decision of buyers will be based on price. To survive in market, every firm differentiates its product and tries to create imaginary difference.

Condition of Entry and Exist:

Entry in market is the biggest challenge for new product and firm. “Entry” is when a new firm is attracted by high profiles. If there are no substitutes available in the market, the firm can make decision without worrying about losing buyers.

Exit from industry happens when firms incur loss and the resources used can be used in producing other products. The firm will exit this industry and enter new industry, where the firm can use same resources. But if the resources have highly specialized uses and very few alternate uses then the exit will be difficult and costly decision.

So, this is the analysis of market on the base of market structure. We learnt about - how market survives among buyers and sellers, what are the trends of buyers and sellers in a market etc. Property market also runs on this concept. So, trends of property market are the very similar to this analysis.
Read more

Contact Us

http://propertyonwheel.blogspot.in/ is a financial blog of my sole opinions, views, reviews and thoughts. The blog site links to other third party sites also related to the blog site content. Do not copy content (text/images) without permission of the blog's owner. The blog takes your privacy as prime concern and you agree to abide by the terms & conditions of the blog by visiting it. Contact Us - riturajji (at the rate of) gmail (dot) com.

New Posts

Your Views