Live revision! Join us for our free exam revision livestreams Watch now

In the News

Oligopoly - Supermarkets investigated over "rocket and feather pricing"

Graham Watson

17th May 2023

It looks like the Competition and Markets Authority (CMA) is interested in the pricing strategies of supermarkets as regards fuel and food. The term 'rocket and feather' pricing has been used to describe a situation where prices go quickly go up in response to supply-side shocks and then take lower to come down as wholesale markets return to normal, and there's a fear that supermarkets might be exploiting consumers as a result.

Additionally, factor in the oligopolistic market structure, and this may also contribute to price stickiness that stops prices falling as quickly as would be the case in more competitive markets.

Watch this space! Of course, any economist worth their salt would tell you that Keynes expressed many of these sentiments a century ago...

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.