Duopoly Meaning: Definition, Examples, and Translations
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duopoly
[djuːˈɒpəli ]
Definition
economic competition
A duopoly is a market structure dominated by two firms, where each firm has significant control over the market. This situation creates a competitive environment, often leading to outcomes that can benefit consumers or, conversely, reduce market efficiency due to limited competition.
Synonyms
bipoly, dual monopoly.
Examples of usage
- The smartphone industry is often considered a duopoly, primarily between Apple and Samsung.
- In a duopoly, the actions of one firm can have a direct impact on the other firm's strategies.
- Regulators monitor duopolies closely to prevent anti-competitive behaviors.
Translations
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Interesting Facts
Economics
- In a duopoly, the two companies typically limit competition, which can lead to higher prices for consumers.
- The classic example is the competition between Coca-Cola and Pepsi in the soft drink market, where both fiercely guard their market space.
- Duopolies can lead to unique marketing strategies, as the companies often target each other's weaknesses.
Technology
- In the tech industry, companies like Apple and Samsung can be seen as a duopoly in the smartphone market.
- The emergence of cloud computing has created duopolistic conditions between Amazon Web Services and Microsoft Azure in cloud services.
Political Science
- Duopolies can occur in politics too, typically referring to two dominant political parties that control the political landscape.
- In the United States, the Republican and Democratic parties often represent a political duopoly, limiting third-party success.
Pop Culture
- Many movies and books explore themes of duopolies, showcasing two opposing forces or characters reflecting the idea.
- In the music industry, duopolies can emerge with two major record labels dominating the market, affecting which artists get promoted.
Origin of 'duopoly'
Main points about word origin
- The word comes from Latin, combining 'duo' meaning 'two' and 'opoly' from Greek 'polein', meaning 'to sell'.
- First used in economic discussions in the early 20th century.
The term 'duopoly' is derived from the combination of the prefix 'duo-', meaning 'two', and the suffix '-poly', which comes from the Greek word 'polein', meaning 'to sell'. The concept emerged from economic theories that analyze market structures and competition. The use of 'duopoly' in economics became more prominent in the early 20th century as economists began to distinguish between different types of market control. The term is extensively used in textbooks and academic discussions to illustrate scenarios where only two companies dominate a market, impacting pricing and supply dynamics. The implications of a duopoly are crucial in understanding market behavior, especially in industries such as telecommunications, airlines, and technology, wherein two companies may have substantial influence over overall market conditions.