An oligopoly is an industry model where there are a few producers which dominate the market. The product can be standard or differentiated but because there are so few competitors in this market these firms do have a lot of control over pricing. An interesting trait in this model is what I want to call the "watch your back" trait in that while companies here have a lot of control, their competitors' reaction to their decisions could usurp their strategy. It is not impossible for others to enter the market, but it is not as easy as say in the pure competition or monopolistic competition. Some of the obstacles here include costs, expertise, and access to ...
This solution explains what oligopoly and monopoly market structures are, including an outline of the different types of oligopolies, and a review of the types of business markets that are likely to be monopolies, or oligopolies. Additionally, the solution includes a source fro further investigation into this economic topic.