Market Structure: Jamie's Kitchen - Assignment Example

rt also aims at taking into account the case study of ‘Fifteen’, a local restaurant in the UK owned by Jamie Oliver, in order to illustrate the impact of market structure on its decision making process. Based on the existence of market players, which further determines the competition within an industry, three major classifications of market structures have been defined, taking them into deliberation by the economists while making decisions, namely the monopoly market structure, oligopoly market structure and monopolistically competitive market structure (Jones, 2002).

However, it is worth mentioning that from a realistic perspective, no particular market structure follows any of the three classifications exclusively, deciphering mixed features of all the three types of market structures. In the UK, the restaurant sector is found to be quite diverse and comprises a large variety of subsectors. Each of these subsectors further tends to deliver different kinds of products or services to its customers, which can be described as imperfect substitutes. For instance, in the UK, general dining restaurants are established to offer specific services such as Italian cuisines, Chinese delicacies or theme based innovative foods, and are usually run by the domestic operators indicating an oligopoly feature.

In its recent operations, the UK restaurant industry was also observed to adjust with the changes caused by the recession effects by ceasing its expansion plans. An in-depth observation of the industry also denotes that in UK, all kinds of restaurants were forced to amplify their item prices in order to deal with the increasing price of goods and ingredients, which illustrates that the players were adequately aware of the other market ingredients deciphering almost no control over customer choices (Key Note Limited, 2011).

Therefore, the UK restaurant industry can be examined to partially inculcate the features of a monopolistically competitive structure, where a