Essay On Oligopoly System

Competition is the rivalry among providers of goods and services trying to pursue goals such as increasing profits, market share and sales. This can all be done by using deferent elements of the market mix. Competition is very important to any economy as it leads to efficiency thus bringing about, technological, innovation, lower prices, quality products and services to consumers. For any economy to have a healthy, well-functioning and free flowing market there has to be a competition policy. Competition policy helps to promote competiveness between firms by making sure the market is working efficiently. Thus it also includes laws that guides, improves and facilitates the allocation of the markets resources efficiently. The ministry of trade

The commercials banks provide money safety in terms of investment and excessing the money in personal accounts, except First National Bank (FNB) as there has been recent schemes regarding their ATM machines. The policy and law also aims to abolish the negative effects resulting from collusive practices, abuse of dominant power and mergers. In the communication sector collusive practices are not really an issue and there hasn’t been any cases reported and Namibia has an oligopoly market. But in the financial sector it is a major problem because Namibia have several commercial banks and insurance companies, example banks collude on high rates of interest and commodity pricing, although there hasn’t been any cases found. As for insurance firm’s example can be used of how some car dealers in Namibia only work with certain insurance firms. Abuse of dominant position in the communication sector can be linked to MTC and Leo before the merger with Telecom in 2014. As MTC used pricing strategies to drive Leo out, so Leo went into a merger and it was impossible for