Oligopoly Definition
An oligopoly is a market form in which a market or industry is dominated by a small number of large producers. Oligopolies are characterized by high barriers to entry, lack of competition, and exclusive control over their respective markets.
In an oligopoly, there are typically only a few firms that produce the majority of the market’s output. These firms have significant control over the prices they charge for their products and can often collude to fix prices and divide up the market among themselves. As a result, oligopolies tend to be very stable and profitable. However, because they lack competition, they can often be less efficient than more competitive markets.
