There are several causes of reduced competition, including:
Mergers and Acquisitions: When companies merge or acquire competitors, the number of players in the market decreases. Regulation: Government policies and regulations can either restrict entry into the market or make it difficult for new players to compete. Barriers to Entry: High barriers to entry such as significant capital requirements, stringent regulations, or proprietary technologies can limit the number of competitors. Natural Attrition: Over time, some businesses may exit the market due to financial difficulties, changes in consumer preferences, or other factors.