OLIGOPOLY

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Product

Few sellers

Differentiated

Undifferentiated

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Type of market structure

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Exits within an economy

Key characteristic

none of these firms can keep the other(s) from having significant influence over the market

there is a small number of firms that control the market

barriers to entry

regulatory barriers

economies of scale

accessing supply

distribution channels

capital requirement

brand loyalty

Examples

steel manufacturing

railroads

tire manufacturing

oil

wireless carriers

grocery store chains

airlines

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Advantages

innovation

efficiency

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Disadvantages

limit competition

Lack of Consumer Choice

Economies of Scale

Investment in Research and Development

Stable Prices

Product Differentiation

Collusion

Barriers to Entry

Inefficient Allocation of Resources

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References