Oil and gas industry perfect competition
We therefore study: (a) the nature of the competition, (b) the structure of the industry, and (c) the practices adopted by oil companies as monopsonist in oil transport and as oligopolists in tanker ownership, and in the demand for tanker space. Many maritime economists believe that the supply of tankers operates under perfect competition. Our Bottom Line: Monopolistic Competition. A market in which there are many firms that sell goods and services that they can distinguish from others, monopolistic competition gives retailers like gasoline stations some price control. The result? Gas prices go up like a rocket but drift down like a feather.