The Australian Model

Thought this was very interesting, Big Boys running the show.


Chart from Deutsche Bank. This is market concentration for the major industries in Australia.



Basically, there’s only two industries in the whole of Australia that are not dominated by a handful of companies.

 

That's pretty scary. No wonder we have such a high cost of living - there's no competition. Yet all the conservatives keep going on about 'free market' this and that.

 

Need some comparisons, US, UK, Germany, Japan, NZ.

 

It is a free market - we just don't have the volume of population to make it worthwhile others entering the marketplace. No point in trying to grab a slice of tiny pie

 

If there were more real players in the RE webvertising market, agency fees would increase as agents would be paying thousands each month to several platforms not just to the two players who have the lions share of the market.

 

yes, thuis is true. the costs are disproportionately high for foreign companies to enter to grab a tiny slice of the pie- its more worthwhile for them to go into larger markets with cheaper buyin/ongoing operational costs that also have a larger pie ( and a rapidly increasing size of the pie as well- eg china, india, etc).

 

Notice how the majority of these with monopoly environments are under highly government regulatory environments which reduce capability for competition to enter? best to diagnose the real problem, than point fingers in the wrong direction.

The other component is relative size of market for certain industries which Lizzie has mentioned.