AboutWarren D. Miller, CFA, ASA, CMA, CPA Expertise My in-depth knowledge of economics is confined to three sub-disciplines: Austrian economics, industrial organization, and evolutionary economics. Other questions dealing with macroeconomics, the traditional neoclassical paradigm, labor economics, environmental economics, agricultural economics, health economics, and so on should go to those who have the appropriate expertise.
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Experience I work with Austrian economics (which is different in major respects from the traditional neoclassical model), industrial organization (which is about industry structure, conduct, and performance), and evolutionary economics (almost, but not quite, the economic analog of its biological counterpart) everyday in my work. I appraise closely-held businesses, provide exit-planning services, and offer high-level strategic analysis, advice, and clients to CEOs and owners of mid-sized businesses. Understanding, applying, and writing about these disciplines is an essential part of how I have made my living since 1993.
Organizations CFA Institute, Strategic Management Society, American Society of Appraisers, Institute of Management Accountants, Academy of Management, Culver Legion
Publications CFA Magazine, Strategic Finance, Valuation Strategies, Value Examiner, Journal of Advanced Property Economics, Harvard Business Review, American Fly Fisher, CFA Digest, CPA Expert, and Business Valuation Review, among others
Education/Credentials MBA - Oklahoma State (1991)
BBA - U. of Oklahoma (1975)
Chartered Financial Analyst designation (2006)
Accredited Senior Appraiser (2006)
Certified Management Accountant (1992)
Certified Public Accountant (1992)
Question Hi,
I'm a 3rd year honours university student and would like to ask, relating to the UK supermarket industry, can yo suggest any measures to enhance competition? Just some guidelines will do, other parts of the question refer to the extent how the largest companies compete and how collusion may be facilitated. But, i'm unsure about that part i've adsked.
Thank you!
Answer Hi, Amy--
I see that honors economics class is still zeroed in on the U.K. supermarket industry. Here's a link to a question I answered several days from one of your colleagues who said her name is Aisha: http://en.allexperts.com/q/Economics-2301/2009/10/oligopoly.htm. I think I put some links in my response that you might find helpful.
Collusion is awfully easy to facilitate. All it takes is a small group of sellers that recognize their interdependence. That is, contrary to the nutty assumption of perfect competition that the actions of any one competitor have no impact on the actions of or fortunes of either the industry or any other players, rivals in an oligopoly CAN affect one another's fortunes. They recognize that and act accordingly, at least most of the time.
The collusion that can occur--my favorite example is the RTE (ready-to-eat) breakfast cereal industry--is a no-brainer. The collusion isn't overt - that would be illegal. But players in an oligopoly, like members of a family, know what is acceptable behavior and what isn't. It's unspoken, but everyone knows--in the family and in the oligopoly.
If you search AllExperts.com on the word OLIGOPOLY, you'll get a number of hits. I have made additional comments about oligopolies that you're likely to find helpful.
Please do me a favor by completing the rate-the-expert e-mail you'll receive about the same time you get this reply from me. Your ratings and, especially, your comments help me do a better job of helping folks like you who ask such interesting questions!
