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