Hairdressing is also a good example of monopolistic competition. Salon and barber shop owners gain a reputation based on the services they offer. The service provided by hairdressers on the market is one of the most famous types of example of monopolistic competition. There is no doubt that there are many hairdressers and each of them has a slightly different type of skill and, therefore, each of them sells a slightly differentiated product to the consumer in the market.
In addition, they have different premises located in a different place where they provide the services. These things differentiate the product in the eyes of consumers. The hairdressing service is not the industry of large chains and, therefore, keeps them away from the more oligopolistic market structure.
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