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Characteristics Of Oligopoly

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An oligopoly is a market with a small number of sellers.
• Oligopoly requires strategic thinking, unlike perfect competition, monopoly and monopolistic competition.
Characteristics of an oligopoly
There is no single theory of prices and production in the oligopoly market. If the price war breaks out, oligopolists can produce and the price as well as a highly competitive industry and would sometimes act as a pure monopoly.
An oligopoly generally has the following characteristics:
• Product Branding: Every company in the market selling a branded product.
• Barriers to entry: The dominant firms earn supernormal profits because the barrier to entry. It is possible that the number of smaller companies operating on the periphery of an oligopolistic market, # but none are large enough to have a significant effect on prices. …show more content…

duopoly
• duopoly is a form of oligopoly
• In its purest form two companies control the entire market, but in fact is used to describe any market in which two companies dominate a significant market share.
• There are many examples of duopoly or Coca-Cola and Pepsi (soft drinks), or Bloomberg and Reuters (financial information services), Sotheby and Christie (antique auctioneers /

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