let us discuss below

In my study of oligopolistic models, a large one that stands out in the field is Big Tech. I am a current student of Data Analytics, and one cannot deny the power and influence that three industries have over this industry. These industries consist of Amazon, Microsoft, Google, Apple, and Facebook (Meta). Each of these industries controls large portions of our tech industry by providing much of the hardware, or in Microsoft and Apple, they control the software that is used in all devices that we own! Amazon, Google, and Microsoft control much of our data through their cloud storage applications, and Facebook has a huge influence on all internet and social media.

When deciding on which model best fits big tech I chose the Sweezy Oligopoly model based on its explanation of how firms within its model act, big tech is very similar. First off, the fact that less than 10 companies control the big tech industry fulfills the fact that big tech operates in an oligopolistic nature. Though each firm resides in the tech world, they all provide unique products that help them differentiate themselves. If Apple would reduce the cost of its cellular phones, Google and Android would respond in kind. Like how Amazon and Microsoft would react if their data cloud service. But if a firm within this service were to raise prices, the others would not and it would be possible that they would take advantage and claim market share from the other if this change occurred.

Because there has been no new firm to enter this category, it is expected that an entry barrier exists that prevents any company from moving into the business of big tech. What we have seen usually in response to a company that gains popularity and a small portion of one of the firms listed above, they usually buy out the competitor at an extremely overpriced amount so that they can either integrate with the business horizontally or shut down the competition and then absorb the customers into their network of consumers.

What is an example of a Contestable Market that you would consider exists in our free market today?

Baye, M., & Prince, J. (2021).Managerial economics and business strategy(10th ed.). McGraw Hill.