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Oligopoly

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia, Hutchinson 0.03 sec.
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.

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.

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



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