Last Updated 31 Mar 2023

Market Domination Can Lead to High Prices and Poor Service Delivery

Category Microeconomics
Words 310 (2 pages)
Views 49
Table of contents

Expedia Inc.

Market domination creates a monopoly-like environment that may result in high product prices that may not really be matched with the quality of services and products Domination of the market by one company may also lead to inefficiencies in service provision due to lack of competition. The effect of this is poor service delivery hence a lack of value for money. The prices of products and services may increase in case one company controls a bigger market share than the competitors. This is shown by the fact that if the dominant company has operations in a wide geographical area, such that only its products and services are available, the company might charge premium prices as a result of lack of competitors. The other major disadvantage of market domination by one company is the lack of variety of products and services. The consumer will be denied access to a variety of products and hence may not get the best quality. On the other hand, market domination may not necessarily be bad. This can be so if the competitors, in a bid to capture market share reduce the prices of their products hence customers are able to enjoy lower prices. Market domination by a company can also have benefits to the shareholders and society in general. The high profits earned by the company will translate into more earnings to the consumers and therefore shareholders' wealth maximization.


Order custom essay Market Domination Can Lead to High Prices and Poor Service Delivery with free plagiarism report

  1. Calladine, P. (2009, April 08th).
  2. Expedia. (2009, April 08th).
  3. asp?rfrr=-950 Forbes. (2005, November 08th).
  4. Market Scan. Travelocity could grow its market share by 25% in 2005. Retrieved April 08th, 2009, from
  5. Fussell, E. (2003, January 01st). How important is an MBA to an engineer? Retrieved April 09th, 2009, from Intech:

This essay was written by a fellow student. You can use it as an example when writing your own essay or use it as a source, but you need cite it.

Get professional help and free up your time for more important courses

Starting from 3 hours delivery 450+ experts on 30 subjects
get essay help 124  experts online

Did you know that we have over 70,000 essays on 3,000 topics in our database?

Cite this page

Explore how the human body functions as one unit in harmony in order to life

Market Domination Can Lead to High Prices and Poor Service Delivery. (2018, Mar 22). Retrieved from

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer