Difference between revisions of "Oligopoly"
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| − | An oligopoly is an industry or market dominated by a few firms selling a similar (undifferentiated) product. This is called a "perfect oligopoly." The few firms can behave in a harmful manner similar to how a monopoly behaves in overcharging customers or otherwise suppressing beneficial competition. | + | An oligopoly is an industry or market dominated by a few firms selling a similar (undifferentiated) product. This is called a "perfect oligopoly." The few firms can behave in a harmful manner similar to how a [[monopoly]] behaves in overcharging customers or otherwise suppressing beneficial competition. |
An imperfect oligopoly consists of a few firms in an industry or market, but their product is differentiated, as in the car industry. | An imperfect oligopoly consists of a few firms in an industry or market, but their product is differentiated, as in the car industry. | ||
Revision as of 10:57, March 1, 2007
An oligopoly is an industry or market dominated by a few firms selling a similar (undifferentiated) product. This is called a "perfect oligopoly." The few firms can behave in a harmful manner similar to how a monopoly behaves in overcharging customers or otherwise suppressing beneficial competition.
An imperfect oligopoly consists of a few firms in an industry or market, but their product is differentiated, as in the car industry.