What type of market structure does airlines come under?
1 answer
Airlines typically come under an oligopoly market structure. In an oligopoly, the market is dominated by a few large firms who have significant control over the market. The airline industry is characterized by a small number of major airlines that compete with each other, such as American Airlines, Delta Air Lines, United Airlines, and others. These airlines have a significant influence over pricing strategies, competition, and market dynamics. Additionally, barriers to entry such as high initial investment, regulatory requirements, and limited airport access contribute to the oligopolistic nature of the airline industry.