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An oligopoly (from Ancient Greek ὀλίγος (olígos) 'few' and πωλέω (pōléō) 'to sell') is a market in which pricing control lies in the hands of a few sellers. [1] [2] As a result of their significant market power, firms in oligopolistic markets can influence prices through manipulating the supply function.
Generally, when a firm operating in an oligopolistic market adjusts prices, other firms in the industry will be directly impacted. The graph below depicts the kinked demand curve hypothesis which was proposed by Paul Sweezy who was an American economist. [29] It is important to note that this graph is a simplistic example of a kinked demand curve.
The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly, and pure monopoly. The main criteria by which one can distinguish between different market structures are: the number and size of firms and consumers in the market, the type of goods and services being traded ...
A duopoly (from Greek δύο, duo ' two '; and πωλεῖν, polein ' to sell ') is a type of oligopoly where two firms have dominant or exclusive control over a market, and most (if not all) of the competition within that market occurs directly between them. Duopoly is the most commonly studied form of oligopoly due to its simplicity.
It is also called oligopolistic price coordination [6] or tacit parallelism. [ 7 ] A dataset of gasoline prices of BP , Caltex , Woolworths , Coles , and Gull from Perth gathered in the years 2001 to 2015 was used to show by statistical analysis the tacit collusion between these retailers. [ 8 ]
As the second-largest member of America's three-way telecommunications oligopoly, AT&T reported steady revenue despite declining business wireline sales. Total revenue in 2024 declined 0.1% to ...
In microeconomics, the Bertrand–Edgeworth model of price-setting oligopoly looks at what happens when there is a homogeneous product (i.e. consumers want to buy from the cheapest seller) where there is a limit to the output of firms which are willing and able to sell at a particular price. This differs from the Bertrand competition model ...
Oligopoly is a market form in which a market or industry is dominated by a small number of sellers. The oldest model was the spring water duopoly of Cournot (1838) [20] in which equilibrium is determined by the duopolists reactions functions.