oligopolies

An oligopoly is a market structure where a few large companies dominate. These companies hold significant market power and their decisions—like setting prices or launching new products—are interdependent, meaning each considers the actions of the others. Because of the limited competition, they can influence prices and output, but their choices also affect one another’s profits. Examples include airlines, telecommunications providers, and soda companies. Oligopolies tend to lead to less competition and potentially higher prices for consumers, but they can also result in collaborative behaviors like price-fixing or market sharing.