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Learning By Examples

Matching Context

Materials on ERPZ are often more focused on delivery of concepts; in particular, our current set of notes in the Economics Section deals largely with the theories and concepts covered in the syllabus and not so much on how to tackle your exams. Essays requires additional skills typically not covered in your lecture notes or textbooks. You could learn them from model essays but it would be better if you build up a style for yourself.

I'll be writing quite a few entries on essay-writing for Economics, which can also be applied to other social sciences at A Levels. I'll start off with an emphasis on examples. The school usually only teach you how to do half of your essay - the conceptual part. And if you don't explain and illustrate (diagrams for) your concepts particularly well, then you can't even get a pass. The other part of your essay has to do with application, which really means explaining in context and giving examples tailored to the context.

When dealing with a question that asks about market structures in Singapore; perhaps one requiring you to cite an example of a oligopoly. You could talk about the hypermarkets or supermarkets but you have to define them carefully and describe the correct players:

Examples of Players
Hypermarts (Giant, Fairprice Extra, Carrefour)
Supermarkets (Cold Storage, Fairprice, Sheng Siong)

Why Oligopoly?
Hypermarts and Supermarts compete on prices and promotions, enjoy large economies of scale from marketing (bulk purchase, advertising, transport) and are usually anchor tenants at various shopping malls. Their mutual interdependence is reflected in attempts to market their house brands during recessions and also trying to differentiate by positioning themselves slightly different. Cold Storage goes for the 'sophisticated but affordable' image while Fairprice going for the 'simple and affordable' image; of course, Sheng Siong targets majority of the households looking for cheap deals.

Within the Singapore market, there are also other shops dealing in the same sort of 'industry' as the hypermarkets and supermarkets so one needs to be careful when discussing them. It is important that you look into the scale of the market you're hoping to discuss about. If you're thinking about just a large neighbourhood or area; then players may actually be engaged in monopolistic competition rather than oligopoly.

Examples of Players
ECONS Mini-market & Neighbourhood Provision Shops

Why Monopolistic Competition?
Compete based on niche markets, providing specialized services (eg. Home delivery by provision shops) and benefit from relatively inelastic demand for necessities.

Do not confuse the different market structure; be clear about the scale of the market you're discussing and think about the players. For localized competition, the players could be specific outlets or stores; but then for a grander scale market, the players would be the group (like with chain-stores and lots of outlets). The explanation on why each of these examples would fit into your concept or theoretical framework is extremely important. Saying stuff like 'most markets in Singapore are Oligopoly, for example the Telecommunications industry' will not be a clear demonstration of your depth of thought. To give your essay more rigour you have to describe the competitive behaviours of the firms in the industry and give examples of actual marketing campaigns or events.