Information AboutOligopoly |
| CATEGORIES ABOUT OLIGOPOLY | |
| market structure and pricing | |
| imperfect 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''. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. Oligopolistic markets are characterised by interactivity. The decisions of one firm influence, and are influenced by the decisions of other firms. Strategic Planning by oligopolists always involves taking into account the likely responses of the other market participants. This causes oligopolistic markets and industries to be at the highest risk for Collusion . Oligopoly is a common Market Form . As a quantitative description of oligopoly, the Four-firm Concentration Ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage. Using this measure, an oligopoly is defined as a market in which the four-firm concentration ratio is above 40%. For example, the four-firm concentration ratio of the Supermarket industry in the United Kingdom is over 70%; the British brewing industry has a staggering 85% ratio. In the U.S.A, oligopolistic industries include accounting & audit services, tobacco, beer, aircraft, military equipment, motor vehicle, film and music recording industries. |
|
|