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First Advisor

Karlson, Stephen H.

Legacy Department

Department of Economics


This paper is a study of effective competition in the United States Economy, for Sector NAICS 51 -Information. The purpose of the study is to learn current competitive conditions of the U.S. economy, since the last study on this subject is at least 20 years old. It is impossible to do the entire economy in one semester, so one sector was decided upon as a start. Sector 51 was “new” and full of exciting technology that is changing our everyday lives, so it was a good fit for a starting point for a much larger study I will do later. This paper only makes claims for Sector 51, not for the economy as a whole. The method of research was that of William G. Shepherd’s study completed in 1982. It includes a great amount of research, analysis, and drafting. The major “findings” are the actual results of placing industries into competitive categories. I have found that the distribution of Sector 5 l’s $623,213 billion of national income comes from the following sources: 0% originates in pure monopolies, 16.6% originates in dominant firms, 44.5% originates in tight oligopolies, and the remaining 34% originates in effectively competitive industries.


Includes bibliographical references.


34 pages




Northern Illinois University

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