ECONOMY / MARKET CONCENTRATION

The Duopoly Doctrine

From supermarkets to airlines and banking, the Australian domestic economy is characterized by extreme concentration, leading to rent-seeking over innovation.

Australia is essentially a collection of state-sanctioned oligopolies. Two supermarkets control ~65% of the grocery market. Four banks issue >75% of domestic credit. One airline group controls >60% of domestic aviation.

The Cost of Concentration

When market dominance is secure, corporations do not need to invest in productivity-enhancing technology or compete on price. They compete on margin expansion.

Sector	Dominant Players	Combined Market Share
Supermarkets	Coles, Woolworths	~65%
Domestic Aviation	Qantas Group	>60%

The Oligopoly Margin Estimator

Estimate the excess profit extracted from consumers due to a lack of genuine competition.

Sector Revenue ($) Competitive Margin (%) Oligopoly Premium Margin Added (%)

Total Rent Extracted from Consumers

This represents capital completely removed from productive circulation.

Interactive Tool Requires JavaScript

This calculator requires JavaScript to function. Below is the underlying formula so you can perform the calculation manually:

Excess Profit = Sector Revenue × (Oligopoly Premium / 100)

Models the literal deadweight loss to the consumer economy caused by a lack of competitive pricing tension.

Frequently Asked Questions

Why doesn't the ACCC break them up?: Australia's competition laws historically protect the 'competitive process' rather than acting against structural monopolies. Until divestiture powers are introduced, the ACCC is largely toothless.