Oligopoly

An oligopoly is a market dominated by a small number of large firms. Each firm watches its rivals closely, because any d

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Oligopoly describes markets dominated by a few large firms. Those markets can still look very different from each other

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Economists define oligopoly in two ways. One looks at how the market is built — a few large firms dominating. The other

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

A concentration ratio measures how much of a market the largest firms control. Add up the market shares of the top firms

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Oligopolies either collude — secretly agreeing with rivals to fix prices or output — or compete independently against ea

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Firms in an oligopoly sometimes work together. Cooperation is legal joint activity. Collusion means secretly agreeing to

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

The kinked demand curve model explains why oligopoly firms rarely change their prices. Rivals copy price cuts but ignore

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Oligopolists often avoid competing on price because cutting prices triggers retaliation. Instead, they compete through a

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Several forces shape what oligopolists charge, produce, and spend. These forces include how rivals react, whether firms

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

In an oligopoly, each firm's decisions directly affect its rivals. Because firms know this, every pricing or output choi

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Oligopoly brings benefits like innovation and product variety, but also risks like high prices and collusion. Whether it

Perfect competition, imperfectly competitive markets and monopoly

Oligopoly

Markets dominated by a small number of large firms — a structure called oligopoly — behave very differently from more co

Perfect competition, imperfectly competitive markets and monopoly