Based On the Content Presented In the Article, Describe the Microeconomic Principles Being Used
The microeconomic principles being used to impact the demand include monopolistic competition and oligopoly. Some companies are taking advantage and utilizing information about consumers on the internet in advertising their products to the consumers through telemarketing (Amacher & Pate, 2013). Telemarketing is whereby a marketer engages individuals with the intention to convince them to buy their products and services through the media (Amacher & Pate, 2013). Big data can take advantage of a monopolistic competition and oligopoly market structures to enable a fair and mutual competition. Customer data is collected which is used in soliciting sales to the customer (Amacher & Pate, 2013). This information provides an advantage to the business firms although it a breach of consumer’s privacy. The firms use this information to extend their exposure and in advertising their products and services and can lead to growth in their market share (Amacher ; Pate, 2013).
Different Types of Market Structures That Big Data Benefits the Least And Benefits the Most
A market structure that big data benefits the least is a monopoly market where there is a single seller of a product or service (Shimomura ; Thisse, 2012). This seller has control over the market and no room for competition for a new company. Due to the dominance of the existing company, a competitor company would not survive in the market as the monopoly company has control of the market and the pricing. In a monopoly market structure, there are a no close substitutes offering the products and services (Shimomura ; Thisse, 2012).
Market structures that big data benefit the most would be an oligopoly market where the market is dominated by a small number of industries (Shimomura ; Thisse, 2012). The firms are also few in numbers an advantage for either of the companies. Oligopolies can enhance competition freely and advertisement can play a big role in selling products and services to the customers (Shimomura ; Thisse, 2012). Big data can benefit companies through media advertisements, which can enable an equal level of competition in the industry market. A monopolistic competition can also favor a big data company the most. A monopolistic competition is a market structure where there are many different firms offering products, which are slightly different (Shimomura ; Thisse, 2012).
Potential Concerns for Consumers That Arise With the Proliferation of Big Data
The potential concern for consumers that arise with the proliferation of big data is the private concern (Amacher ; Pate, 2013). Most of the information collected about consumers is important and crucial information, which increases the risk of consumers while using the internet to search for products and services (Amacher ; Pate, 2013). The storage and usage of personal data is against consumers will and these data can be used against them. Most individuals feel a sense of insecurity by firms retaining their personal information with some feeling it as a bother as some are not interested in the products and services offered by the firms. This may instill fear to individual who want to join genuine firms in accessing different products and services (Shimomura ; Thisse, 2012).
Amacher, R., ; Pate, J. (2013). Microeconomics principles and policies. San Diego, CA: Bridge point Education, Inc. Retrieved from https://content.ashford.edu.
Shimomura, K., ; Thisse, J. (2012). Competition among the big and the small. RAND Journal of Economics, 43(2), 329-347.