Re:IMF: Largest driver of EU inflation is corporate profits
by revelio on Tuesday June 27, 2023 @04:16AM
(#36490249)
That claim is very specific to how you define market.
Most markets have never had more than 3-5 major competitors in them because beyond that it gets too hard for customers to differentiate between them, too hard to understand all the available brands etc.
But this depends on a lot on where you draw the boundaries of the market. There probably aren't more than 5 good Chinese restaurants within walking distance of where you live even in a city, for example. But over the whole city there are many more. There are only ~4 main cloud providers globally, but if you expand your definition of the market a bit further there are many more.
In practice for price competition to exist you don't seem to need more than 3-5 players. For example Oracle offer a generous free tier in the cloud space.
Most markets have never had more than 3-5 major competitors in them because beyond that it gets too hard for customers to differentiate between them, too hard to understand all the available brands etc.
But this depends on a lot on where you draw the boundaries of the market. There probably aren't more than 5 good Chinese restaurants within walking distance of where you live even in a city, for example. But over the whole city there are many more. There are only ~4 main cloud providers globally, but if you expand your definition of the market a bit further there are many more.
In practice for price competition to exist you don't seem to need more than 3-5 players. For example Oracle offer a generous free tier in the cloud space.