Oligopolistic arms industry

The oligopolistic arms industry refers to a market structure where a small number of large companies dominate the production of weapons and military equipment. These firms often have significant influence over prices and supply due to limited competition. In this context, they may engage in strategic interactions, such as price setting and technology sharing, while also considering government contracts and international regulations. This concentration can lead to innovation but might also result in higher costs and reduced choices for consumers, impacting global security dynamics and international relations.