What do you think is the best ethical way to handle oligopolies?

Answer 1

The most ethical way to handle an oligopoly is to first take a closer look at the industry. Is it oil? communications? utilities? Cable? these are the industries in which oligopolies are more present. Because of the laws protecting businesses, and because of those protecting consumers, oligopolies are difficult to handle.

Many times, companies that are a part of oligopolies start by increasing production and lowering prices, creating stiffer competition. This is one instance in which we, as consumers, might benefit from lower prices, but might miss out on quality.

in other instances, the companies form what is known as a cartel, where they seemingly gather in a dark room together and set a price 'floor' (minimum) or price ceiling (maximum) to cut out competition and give consumers no real solid choices.

The most ethical way to handle these "evil" companies that engage in unethical business practices is to either A) use small businesses such as locally owned and operated for your consumer needs- although you may pay a premium; or B) look into the FTC Consumer Protection laws and try to file against the alleged companies participating, or see if they are really breaking any laws.

Unfortunately, the strong arm of the corporation seems to always win out against the little guy, but don't be disheartened- many times, you end up getting better service or lower prices for things that would otherwise cost an arm and a leg. There is no real answer on how to handle an oligopoly, other than to handle yourself in an ethical manner and remember that we can't always have it all. good luck in your fight against "the man!"