Oligopoly Market Structure

An oligopoly is a market structure where a few large companies dominate the industry. These firms sell similar products and have significant control over pricing and output. Because there are only a handful of competitors, their decisions, such as raising prices or changing product features, can directly affect one another. This interdependence often leads to strategic planning, where companies may cooperate or compete aggressively. Examples include industries like telecommunications, airlines, and automobiles, where a few key players influence the market significantly, often leading to higher prices and less consumer choice compared to more competitive markets.