Microeconomics: Types of Market

There are 4 types of Market Systems:1) Perfect Competition2) Monopolistic3) Oligopoly4) MonopolyNote: Screenshot used may not able to fully represent the types of market as Economic Theory may not be accurate when applied in real life especially when applied in video game market.In Perfect Competition market, there are a lot of sellers compete against each other.In this kind of market, seller will had to sell item at lowest acceptable price if they want to earn profit. The power in deciding item prices in this type of market are very low to none. Seller themselves have no control over market as they competition in this market are way too stiff for them to make influence in market.If a seller set price higher than usual, there are very big chance that no one will buy items from that seller as the buyers tend to find sellers that can satisfy their needs with lowest price possible. Buyer in this type of market usually won't buying item from seller that sell item with a price higher than other sellers.Oppositely, if a seller set item lower than usual price, we can expect that seller will sell their item much easier as the price is cheaper than other seller's price. However, the profit are much lower compared to other sellersAn example of Perfect Competition MarketFrom that screenshot we can see that the price trend are usually very stable. Because the amount of competition in market are way too stiff as they are a lot of seller selling same type of item in market.In this market, there are sellers compete against each other but the item they sell are slightly different. Also, the amount of competition in this types of market are not as competitive as in Perfect CompetitionThis can be related to TF2 market where player sell a weapon skin but with different quality. Some may sell a Battle Worn skin while some of them sell Factory New skin.In this market, seller have a little power in decide the item prices as the buyer themselves willing to buy item at certain price range. However, setting item prices way too high may cause seller unable to get someone buy their item. Setting item prices too low also makes seller earn less profit.In Oligopoly market, there are only few sellers selling item in market. Sellers have bigger power in influencing market by having bigger power in deciding the prices for item they wanted to sell.In this type of market, if one of the seller decided to make drastic change in price, it may result in drastic changes in market.For example, let's say 3 seller in market usually sell a skin for RM500 in oligopoly market but suddenly one of them decided to sell it at RM300 which may cause other seller have to lower their price in order to compete with that seller. If the sellers choose not to follow other competitor's price, the sellers themselves have to embrace the fact that competitor will get buyer first before they do.Example of Oligopoly marketIn Monopoly market, there are only 1 seller exist in market.Simply put: "I am the only one that selling this, if you don't like it go away!"In longer word, there are no competition in monopoly market as only 1 seller exist. The seller himself can influence market as they like by having full power in deciding the price. Buyer have to accept the price if they want to buy item from respective seller.This is an example of monopoly market in TF2.