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Oligopoly: meaning, definitions and examples

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oligopoly

 

[หŒษ’lษชหˆษกษ’pษ™li ]

Definition

Context #1 | Noun

market structure

An oligopoly is a market structure characterized by a small number of firms that have significant control over market prices. Due to this limited number of competitors, each firm must consider the potential reactions of its rivals when making pricing and production decisions. Oligopolies can lead to reduced competition and higher prices for consumers compared to more competitive markets. There are various models to analyze oligopolistic behavior, including the Cournot and Bertrand models, which describe different approaches to output and pricing strategies.

Synonyms

duopoly, limited competition, monopolistic competition.

Examples of usage

  • The airline industry is often cited as an example of an oligopoly.
  • In an oligopoly, companies may engage in collusion to set prices.
  • Telecommunications markets in many countries operate as oligopolies.
  • The car manufacturing sector is dominated by a few oligopolistic firms.

Interesting Facts

Etymology

  • The term comes from combining the Greek words 'oligos', meaning 'few', and 'polein', meaning 'to sell'.
  • It was first coined in the early 20th century, around the year 1900, to discuss market structures.

Economics

  • In an oligopoly, companies may work together or compete, but their decisions are interdependentโ€”one's choice affects the others.
  • Common examples include the airline, automobile, and smartphone industries, where a few firms dominate the market.

Pop Culture

  • Films like 'The Big Short' expose how a few large entities can influence entire economies.
  • TV shows such as 'Billions' often discuss the power dynamics of big businesses, reflecting real-life oligopolistic behavior.

Psychology

  • In an oligopoly, companies might follow a 'kinked demand curve', where price increases on one product lead to changes in consumer behavior.
  • Behavioral economics illustrates how consumers perceive brands differently within an oligopoly, impacting their purchasing choices.

History

  • Historically, the railroads in the United States during the 19th century are a classic example of oligopoly, involving a few key players.
  • The OPEC oil cartel is a modern instance, where a small number of countries coordinate efforts to influence oil prices globally.

Translations

Translations of the word "oligopoly" in other languages:

๐Ÿ‡ต๐Ÿ‡น oligopรณlio

๐Ÿ‡ฎ๐Ÿ‡ณ เค“เคฒเคฟเค—เฅ‹เคชเฅ‰เคฒเฅ€

๐Ÿ‡ฉ๐Ÿ‡ช Oligopol

๐Ÿ‡ฎ๐Ÿ‡ฉ oligopoli

๐Ÿ‡บ๐Ÿ‡ฆ ะพะปั–ะณะฐั€ั…ั–ั

๐Ÿ‡ต๐Ÿ‡ฑ oligopol

๐Ÿ‡ฏ๐Ÿ‡ต ๅฏกๅ 

๐Ÿ‡ซ๐Ÿ‡ท oligopole

๐Ÿ‡ช๐Ÿ‡ธ oligopolio

๐Ÿ‡น๐Ÿ‡ท oligopol

๐Ÿ‡ฐ๐Ÿ‡ท ๊ณผ์ 

๐Ÿ‡ธ๐Ÿ‡ฆ ุงุญุชูƒุงุฑ

๐Ÿ‡จ๐Ÿ‡ฟ oligopol

๐Ÿ‡ธ๐Ÿ‡ฐ oligopol

๐Ÿ‡จ๐Ÿ‡ณ ๅฏกๅคดๅž„ๆ–ญ

๐Ÿ‡ธ๐Ÿ‡ฎ oligopol

๐Ÿ‡ฎ๐Ÿ‡ธ รณlรญgapรณl

๐Ÿ‡ฐ๐Ÿ‡ฟ ะพะปะธะณะพะฟะพะปะธั

๐Ÿ‡ฌ๐Ÿ‡ช แƒแƒšแƒ˜แƒ’แƒแƒžแƒแƒšแƒ˜แƒ

๐Ÿ‡ฆ๐Ÿ‡ฟ oligopol

๐Ÿ‡ฒ๐Ÿ‡ฝ oligopolio

Word Frequency Rank

At rank #26,677, this word represents specialized academic or technical vocabulary. It's less frequently encountered but may be valuable in specific contexts.