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Is Airbnb an oligopoly?

Airbnb and many other housing platform firms are profit-maximizing corporations and it comes as no surprise that they flex their oligopoly power over data toward this end.



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They currently operate in 220 different countries across the globe and get around 78 million unique monthly visitors, making it a truly internationally recognized company. Airbnb has a giant footprint in the vacation rental industry market share.

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Other industries with an oligopoly structure are airlines and pharmaceuticals. Some of the most notable oligopolies in the U.S. are in film and television production, recorded music, wireless carriers, and airlines. Since the 1980s, it has become more common for industries to be dominated by two or three firms.

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Airbnb market share Although Airbnb operates in the intensely competitive travel accommodation industry, the company's market share has risen dramatically since 2010.

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A monopoly by definition, is the exclusive possession or control of the supply of a service. According to the letter of the law, Disney is an oligopoly, a state of limited competition in which a market is shared by a small number of producers or sellers.

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The closest example of a monopoly in the U.S. is the power that runs to people's homes. Most households have a single provider for their electricity service, whether it's government-run or run by a corporation. By contrast, an oligopoly has at least three companies present in the market.

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By inventing the market for public cloud services, AWS enjoyed a significant first-mover advantage over competitors that ceded Amazon years to develop services, build infrastructure and woo customers. But Amazon is only part of an emerging oligopoly where customers will have real choice.

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