As the CEO of an airline, the best market structure to operate under is an oligopoly market. This is a type of market whose control is under a small group of firms that are developed and are well acquainted with this market niche. This is the best option because, as an established firm, it is likely to make good profits and compete favourably with the other big giants in this sector. The above situation is favoured by the fact that it is hard for other firms to influence competition in this sector because they can hardly get into the market because of competition-related barriers ( Ciliberto et al.,2018) . Another important aspect of operating in this market is that it is possible to cushion the risks caused by external environmental factors such as cartels.
As a consumer, I would prefer a perfect competition market. This market is characterized by the presence of infinite buyers and sellers. In the airline industry, several players in this market ensure positive completion. This, in turn, ensures that services offered are improved in a bid to remain competitive. In addition to this, there is an array of products to choose from, and as a consumer, I can always get alternatives that suit my needs ( Azevedo, Eduardo & Gottlieb, 2017) . Another important quality that makes this market desirable is the fact that airfares are likely to be moderate, unlike in oligopoly markets where transport cost is likely to be high because of the internal as well as external factors that affect the operation of airlines in these niches. At the end of it all, hence, I am likely to receive satisfactory services. There is also flexibility in this market in that there are many alternatives to choose from.
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References
Ciliberto, F., Murry, C., & Tamer, E. T. (2018). Market structure and competition in airline markets. Available at SSRN 2777820 .
Azevedo, E. M., & Gottlieb, D. (2017). Perfect competition in markets with adverse selection. Econometrica , 85 (1), 67-105.
