A domestic or international market structure comprising several firms, each of which is large enough to affect prices but none of which holds an uncontested monopoly position. While limited price competition may occur among sellers in an oligopoly, a single large producer may assume a leadership position in establishing prices or terms of sale that the other firms will tacitly follow. When concerned action or collusion occurs among oligopolistic firms, the association is known as a cartel.
control of goods or services in a given market by a small number of companies. An example is the U.S. auto industry, in which three major manufacturers account for over ninety percent of the output of passenger cars.
A form of industry structure characterized by a few dominant firms. Products may be homogenous or differentiated. The behavior of any one firm in an oligopoly depends to a great extent on the behavior of the others.
A market structure in which a few, relatively large firms account for all or most of the production or sales of a good or service in a particular market, and where barriers to new firms entering the market are very high. Some oligopolies produce homogeneous products; others produce heterogeneous products. View Capstone Lesson(s) that address this concept
An economic situation in which a few companies control a market, often cooperating with each other to keep out new firms. In the U.S. film industry after the 1920s, the Majors and the Minors constituted an oligopoly.
is closer to monopoly than to perfect competition because it is typified by few firms (as few as two or three) and by moderately difficult entry. In product type, oligopoly markets may have either standardized or differentiated products. The open market is the market of dealers in government securities in New York City. The Open Market Committee is composed of 12 voting members: the 7 members of the Board of Governors and 5 of the presidents of regional Federal Reserve banks. Presidents of the regional banks serve on a rotating basis, with the exception of the president of the Federal Reserve Bank of New York, who is vice chairman and a permanent voting member of the committee.
a small group of companies that are the only ones to produce something (the same thing). The members of the group control the market and agree to sell their product at high prices. OPEC (Organization of Petroleum Exporting Countries) is an example of an oligopoly. 23
This is a market structure with few sellers and many buyers that produces either a similar or a differentiated product and makes entry difficult. Because oligopolists are reluctant to engage in price competition, there is an opportunity for monopolistic profits to accrue to the few firms in the market; however, economies of scale may offset this process.
A few sellers who exert market control overprices. OPEC: Acronym for Organization of Petroleum Exporting Countries founded in 1960 to unify and coordinate petroleum polices of the members. The headquarters of OPEC is in Vienna, Austria.
market dominated by a small number of large firms, selling either identical or differentiated products, and significant barriers to entry into the industry. This is one of four basic market structures. The other three are perfect competition, monopoly, and monopolistic competition.
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for few sellers. Some industries which are oligopolies are referred to as the "Big 3" or the "Big 4."