Definition, Meaning & Synonyms
oligopoly
noun
/ˌɑːlɪˈɡɒpəli/
Definition
A market structure characterized by a small number of firms that dominate the market, leading to limited competition.
Examples
- Gas stations often operate in an oligopoly, with only a few major companies controlling the prices.
- The smartphone market is an example of an oligopoly, dominated by a handful of large manufacturers.
- When just a few airlines control most of the flights in a region, it creates an oligopoly within the industry.
Meaning
In an oligopoly, a few companies have a significant share of the market, which allows them to influence prices and market behavior.
Synonyms
- Monopoly (where one firm controls the market)
- Duopoly (where two firms dominate)
- Market control
