Oligopoly

Oligopoly is a market structure where a few large companies dominate an industry, such as airlines or smartphones. These companies hold significant market power and their decisions, like setting prices or launching new products, can heavily influence each other. Because there are only a few players, they often watch each other closely, leading to strategic behaviors like collusion or price wars. This can result in higher prices and reduced competition, impacting consumer choices and market efficiency. Overall, the performance of an oligopoly can lead to both benefits and drawbacks for consumers and the economy.