Oligopoly and Market Structures

Oligopoly is a market structure where a few large companies dominate the market, influencing prices and competition. Unlike perfect competition with many small players, or monopoly with one seller, oligopolies involve interdependent decisions among the few firms. Examples include the airline and automobile industries. These companies may engage in collusion, where they coordinate actions to maximize profits, or compete aggressively through pricing and marketing. Overall, oligopolies can lead to less competition and higher prices for consumers, but they can also foster innovation and investment among the main players.