OSEMWENGIE, P. K. & OSEMEILU, B. I.
Department of Economics, Faculty of Social Sciences, University of Benin
For correspondence, email: presley.osemwengie@uniben.edu
Abstract
This study examined competitive markets in Benin metropolis, Edo State, Nigeria, using a well- structured questionnaire to gather data. The data were analyzed using SPSS 22.0. The research findings shed light on the competitive dynamics and market imperfections in the Benin Metropolis markets, revealing specifically the absence of perfect competition. Findings further revealed the prevalence of market Imperfections such as price discrimination, collusion, and barriers to entry which significantly impact Market outcomes. Estimates of market equilibrium parameters offer crucial insights into market dynamics, while welfare analysis underscores the potential for policy interventions to enhance market outcomes. The findings from the study further enriched the literature on market competition and welfare analysis, laying the groundwork for future research in this domain. Based on the research findings, policymakers and stakeholders in Benin Metropolis should considered policies that reduce barriers to entry such as simplifying licensing requirements/provide funding for start-ups businesses, increasing regulatory oversight and ensuring consumer protection policies that protect consumers from predatory pricing Practices.
Keywords: Competitive markets, Market imperfections, Welfare analysis, Policy interventions
