Table of contents:
Table of contents: 1
Introduction 2
Grocery Retail industry in Australia: 2
Market Failure in grocery retailing: 4
Undesirable consequences to the society due to market failure in grocery retail market 6
Governmental regulations for market failure in grocery retail 7
Market failure pertains to both developing economies and developed countries: 8
References: 10

Introduction
In this business report, the analysis is about the grocery Retail Industry in Australia and how the oligopolistic market structure of the industry has generated a market failure in the industry. the government Regulation and the code of conduct created for the retail supermarkets has also been discussed. and the final section details about whether the market failure is occurring only in developing economies and not in the developed ones.
Grocery Retail industry in Australia:
Grocery Retail Industry in Australia consists of very few supermarkets dominating the industry namely Coles and Woolworths, and since the last decade, Aldi and Costco have joined the industry. Since there are very few players in the market of grocery retail, it fits aptly into the oligopolistic market structure the characteristics of which are discussed below:

Oligopoly like that of grocery Retail Industry in Australia is a market structure where only a few firms dominate in the market. When such a situation of a few firms dominating the market occurs, there tends to be a high concentration in the market. In the grocery retail industry of Australia, before Aldi and Costco entered the market, the industry was dominated only by Coles and Woolworths. The Key characteristics of the oligopolistic market structure are that the firms in the industry are interdependent and generally cannot act independently without taking into consideration the actions and reactions of the other firms in the market. for example, Coles has to take into consideration the potential reaction of its closest Rivals like Aldi, Costco and Woolworths before making its own decisions. the understanding of prisoner's dilemma and

Suppose that a person lives for two periods, earning $30,000 in per...