Models of Competition Essay Example | Topics and Well Written Essays - 750 words - 1

Models of Competition - Essay Example e are just a few sellers in collusion (strategically interactive) with the main aim of minimizing competition to provide products and/or services to a large number of customers. A perfect example is the OPEC which controls the price of oil internationally. Perfect (pure) market is broadly an assumption that describes structures in which no player is so enormous as to wield those powers to set the price of a homogenous commodity (Brakman, pg 13). It is always used as a benchmark. In the ideal world, the market is in between the monopolies and perfect market structure. Monopolies do exist especially in the provision of very sensitive public utilities like in the provision of medical services, and public utilities such as gas, electricity, sports e.g. Super sport etc while perfect markets are rather theoretical. The stock markets are near perfect markets due to their composition but not very perfect as it is (Brakman, pg 106). The overarching issue is that competition in most if not all markets are imperfect and even though the goods and services may be differentiated, the firms would still face a down ward sloping curve trend. Markets assuming perfect competition do provide insufficient insight on how markets behave and respond to various factors. Even though the perfect market assumption provides a benchmark, the assumption is that they are pareto efficient. They are assumed to be controlled by such forces that even the government has no control over. This m arket has some limitations among the most crucial being the fact that all people are similar or identical for that matter. But through such models as the Dixit-Stiglitz model the element of the people’s welfare can clearly be examined. The result however gives us a false view of how the market is but for that reason, policies affecting the degree of diversity of merchandise differentiation are having markedly diverse effects on diverse individuals. This to a great extent complicates the analysis of the

Reasons for Not Closing Guantanamo Research Paper

Reasons for Not Closing Guantanamo - Research Paper Example The research paper "Reasons for Not Closing Guantanamo" explores the reasons why the Guantanamo Bay detention facility has not managed to close. There have been numerous efforts to close Guantanamo Bay detention facility during Obama’s term as president. Previously, when the President issued the Executive Order for the closure of the facility, the engaged Congress opposed him, hence restricting the delivery of his earlier pledge. There are various problems facing Guantanamo Bay, and even when shut down, more legal, social, and economic challenges would arise if proper measures are not put in place. Besides the Congress, several legislatures have factored into the logistical problems, by acting to withhold funds meant to aid in closure of Guantanamo detention camp. For quite a while, the Congress has repetitively voted against the closure of the facility and included provisions that would prevent the use of appropriated funds for any actions aiding in its closure. The detainees in the detention facility have been categorized into 3 groups; those under preventive detention meant to stop them from returning to the battlefield, those under preventive detention and still expected to appear before the military or other tribunal for criminal charges, and those cleared for transfer or release to other foreign nations, after contentment that they pose no security threat or did not engage in any hostilities. Moving the detainees as the last category infers, requires funds to relocate the detainees into other countries. In 2010, after Obama’s Order, the Congress passed a legislation (Defense Authorization Bill), blocking the department of defense from spending any finances in relocation of Guantanamo prisoners from the US for any reason (Landers, 2010). Therefore, any acts of reducing the populating in the facility in line with its closure have failed. On a further opposition, the Congress made it certain that the detainees required to be in the facility and hence restricted the action of building another facility in the mainland United States. Despite the Administration’s clear opposition of section 413, the Congress prohibited the utilization of funds to construct, upgrade or renovate, and expand the US correctional facility in order to house individuals held in the Guantanamo detention facility (Executive Office of the President, 2013). Through the ban, the congress made it clear that not even other US prison facilities would be spared. None would receive financial support to aid in extra housing of the detainees that would be transferred from Guantanamo, which included the expansion activities or operating costs in maintenance of the detainees. Apparently, it is evident that the congress has consistently been usin g its spending oversight authority to control government funds from acquisition by an Illinois state prison (as a detention facility of one category for Guantanamo detainees), financing trials or even of the