Duopoly

Duopoly is a type of market structure where two companies dominate a particular industry or market. These two firms have significant control over prices and supply, often competing fiercely with each other. Their decisions on pricing, production, and marketing directly affect one another, which can lead to various strategies, such as price cuts or product differentiation, to attract customers. Duopolies can lead to higher prices and reduced innovation compared to competitive markets, but they can also foster a strong focus on improving products and services as each firm tries to outperform the other.