key term - Oligopoly

Definition

An oligopoly is a market structure in which a few large firms dominate the industry, possessing significant market power to set prices and influence market outcomes. These firms produce similar or identical products and compete on factors other than price, such as innovation and marketing.

Related terms

Market Power: The ability of a company or group of companies to manipulate the price of an item in the market by controlling supply, demand, or both.

Product Differentiation:

A strategy that businesses use to distinguish their products from those of competitors in ways that are meaningful to customers.

Monopoly: A market structure where a single firm has exclusive control over a commodity or service, setting prices and production levels without competition