Oligopoly (redirected from Desologopolization)

Oligopoly

A Market characterized by a small number of producers who often act together to control the supply of a particular good and its market price.

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Oligopoly

A situation in which a small number of companies split all or nearly all the market share of a good or service. There are two major models for oligopoly: the Cournot model and the Bertrand model.

In the Cournot model, each company assumes the output of the others, resulting in greater output than in a monopoly but less than in a state of perfect competition. This pushes prices lower but not as low as they would be in perfect competition. In the Bertrand model, the companies compete for the lowest possible price, resulting in perfect competition. Both models are applicable in different situations and times and neither expresses oligopoly perfectly. Less commonly, a third option is possible: if the companies in the oligopoly openly collude with each other, they can form a cartel.

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oligopoly

A market in which a limited number of sellers follow the lead of a single major firm. For example, the domestic automobile market was long characterized as an oligopoly, with American Motors, Chrysler, and Ford following the pricing lead of industry giant General Motors. Compare monopoly, oligopsony.

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Oligopoly

What Does Oligopoly Mean?

A market condition in which a particular segment of the market is controlled by a small group of firms. An oligopoly is much like a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least two firms controlling the market.

Investopedia explains Oligopoly

The retail gas market is a good example of an oligopoly because a small number of firms control a large majority of the market.

Related Terms:
• Behavioral Finance
• Law of Demand
• Law of Supply
• Market Economy
• Monopoly