oligopoly
Market few dominate
An oligopoly is a market dominated by a small number of large sellers, giving each significant influence over prices and competition.
Unlike a monopoly with one seller, oligopolies feature a few major players who watch each other closely: The airline industry operates as an oligopoly, with a handful of carriers controlling most routes.
The adjective is oligopolistic.
Price-fixing coalition
- price fixingIllegal coordinated rate-setting
- bid riggingConspiring to fix auction outcomes
- OPECPetroleum exporters' coalition
- gentleman's agreementInformal pact based on trust
Factors blocking market access
- market powerControl over transaction terms
- incumbentsCurrent holders of positions
- network effectsValue increasing with participation
- brand loyaltyHabitual preference for one company
economies of scale · capital requirements · vertical integration · predatory pricing · proprietary technology · sunk costs
Against corporate market dominance
- oversightSupervision or inadvertent omission
- enforcementCompelling compliance with rules
- FTCCommerce regulatory agency
- DOJFederal legal enforcement agency
European Commission · consent decree · Clayton Act · investigation · fine · breakup · divestiture · compliance
Study of strategic interaction
- interdependenceReciprocal reliance between entities
- market concentrationExtent of seller dominance
- profit maximizationPursuing greatest possible gains
- market failureInefficient resource distribution
Remote signal transmission technology
- airlinesCommercial flight operators
- bankingFinancial institution transactions
- oilSlippery viscous fluid
- automotiveRelating to motor vehicles
pharmaceuticals · tech giants · streaming services · wireless carriers · credit cards · beer · soft drinks · defense contractors
cartel
Price-fixing coalition
- price fixingIllegal coordinated rate-setting
- bid riggingConspiring to fix auction outcomes
- OPECPetroleum exporters' coalition
barriers to entry
Factors blocking market access
- market powerControl over transaction terms
- incumbentsCurrent holders of positions
- network effectsValue increasing with participation
brand loyalty · economies of scale · capital requirements · vertical integration · predatory pricing · proprietary technology · sunk costs
antitrust
Against corporate market dominance
- oversightSupervision or inadvertent omission
- enforcementCompelling compliance with rules
- FTCCommerce regulatory agency
DOJ · European Commission · consent decree · Clayton Act · investigation · fine · breakup · divestiture · compliance · transparency
game theory
Study of strategic interaction
- interdependenceReciprocal reliance between entities
- market concentrationExtent of seller dominance
- profit maximizationPursuing greatest possible gains
telecommunications
Remote signal transmission technology
- airlinesCommercial flight operators
- bankingFinancial institution transactions
- oilSlippery viscous fluid
automotive · pharmaceuticals · tech giants · streaming services · wireless carriers · credit cards · beer · soft drinks · defense contractors · railroads
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- capitalismcapitalism, free market, free enterprise, private property, profit motive
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- market economicsperfect competition, monopsony, market concentration, market power, antitrust
- microeconomicsdemand, supply, supply and demand, price, market
- business combinationsmergers, cartels, conglomerates, consortiums, holding companies
oligopolyperfect competition
Frictionless market ideal
free market · competitive market · open market · buyer's market · monopsony
oligopolydecentralization
Distributing power from center
sharing · collective ownership · democracy · pluralism · egalitarianism