Oligopoly

Also known as: Oligopolistic market

An oligopoly is a special form of market that is characterized by a relatively small number of market players.

Types of oligopolies

Supply oligopoly - In the case of a supply oligopoly, only a few providers are active market represent

Demand oligopoly - In the case of a demand oligopoly, only a few inquirers or buyers

Bilateral oligopl - If there are both a few providers and a few consumers, there is a so-called bilateral oligopoly

As in the Polypol, the Pricing durch das Zusammenspiel aus supply and demand. In der Theorie senken alle Anbieter die Preise dem Preisführer folgend auf das gleiche Niveau.

Bei einem Angebots-Oligopol werden gemeinhin höhere Gewinnspannen angenommen als im Polypol; Ein Preisverfall bis auf das Niveau der Grenzkosten tritt bei wenigen Anbietern und überschaubarer Konkurrenz tendenziell nicht ein.

Examples of oligopoly markets

A typical range of offers are, for example, rail transport services, letters or mobile communications. In each case, there are only a few providers facing a large number of buyers, which is mainly due to the high barriers to market entry (great effort to set up the necessary infrastructure, e.g. rail network).

Demand oligopoly sometimes occurs in the B2B sector, for example when a few large dairies are supplied by many farmers.

Bilateral oligopolies can be found, for example, in the luxury goods segment (e.g. in products such as sports cars or yachts) where a merely exclusive consumer base demands the goods offered by a few companies.

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