is a market situation in which there are a few firms selling homogeneous or
differentiated products. Examples are oil and
is difficult to pinpoint the number of firms in ‘competition among the few.’
With only a few firms in the market, the action of one firm is likely to affect
big firms own the major control of the whole market by producing major portion
of the market demand.
and quality decisions of a particular firm are dependent on the price and
quality decisions of the rival firms.
under oligopoly realise the importance of mutual co-operation.
oligopolist could raise sales either by advertising or improving the quality of
products and imperfect oligopoly deals with heterogeneous products.
that prices are difficult to be changed. The oligopolistic firms do not change
their prices due to the fear of rivals’ reaction.