In economics, an oligopoly is when a market is controlled by a small number of sellers. Very often, there are only three or four of them. Oligopolies are very common. The main feature of the oligopoly is that a decision made by one market player influences the whole market.
Examples[change | change source]
In many countries, some country-held companies were privatized. Very often, this privatization lead to oligopolies. In many countries, there are only a handful of companies providing networks for mobile phones. They control the prices for accessing the network. That is why using a mobile phone is often much more expensive than using a land line one.
Trains run by private sectors are much costlier than those run by a government. As a government gives rights to private sectors to get a hold of some other sectors, they take advantage of it.
Other websites[change | change source]
- Microeconomics by Elmer G. Wiens: Online Interactive Models of Oligopoly, Differentiated Oligopoly, and Monopolistic Competition
- Vives, X. (1999). Oligopoly pricing, MIT Press, Cambridge MA. (A comprehensive work on oligopoly theory)
- Oligopoly Watch A blog on current oligopoly issues from a business and social perspective
|Different Market forms|
|Perfect competition • Monopolistic competition • Oligopoly • Oligopsony • Monopoly • Natural monopoly • Monopsony|