Question

2/13/2020 Ch 9 HW (pa) Do a Web search to investigate the various firms providing corrective laser eye surgery (use keyword "laser eye surgery" or some combination of those terms...) Compare the firms by Investigating how they are attracting customers, similarities and differences, how many firms does there appear to be. Which market structure do you feel they belong (perfect competition, monopoly, monopolistic competition, or oligopoly)? Why? As you develop your argument, detail the reasons you think laser eye surgery is and is not in each market structure. Example: I feel the laser eye surgery industry is not perfectly competitive because: 1. They utilize advertising and perfect competitors have no need to advertise 2..... Look at the table on page 183 (chapter 7)...this will give you some details you should compare. Be sure to address the number of firms, how they compete (price, advertising, product differentiation), and ease of entry into industry. Comparing these factors will be the basis for your argument.

Answer 1

Laser eye surgery is broadly offered by multiple hospitals in United States of America by Stanford laser eyeCentre, Jules stain eye UCLA, Wilmer eye Institute John Hopkins, Optimal gallery eyecare and many more generic independent hospitals and clinics.

Since entry barriers are low, capital expenditure initially for setup and license arrangement is easier, higher demand for laser surgery and easy entry into market through consolidation and joint venture make this as perfect competitive market structure as margins are wafer thin and Differentiation is minimal with high number of firms with low market share fragmented across USA.

Similarlity in product include cataract eye surgery, eye laser removal, eye lens implant which is broadly offered however different services like robotic eye surgery and intense cloning of eye retina is core differentiation factor.

Customer here gets attracted on brand awareness and quality of services with affordable pricing.