Oligopoly
Here we discuss about Oligopoly. Oligopoly Definition We can define Oligopoly as: “It is the market model in which there are very few sellers producing either homogenous (Similar) or differentiated products and where the decision making powers of the firm depend on the expected reactions of other market firms and also the entry to the market is difficult or blocked by big firms”. Examples of Oligopoly Market Model include Automobiles Companies, Software House Companies, Air-Lines, Oil Producing and Exporting Countries. Features or Characteristics of Oligopoly 1. Few Sellers It is a market situation in which the number of firms or sellers is very few. They produce similar or differentiated products. 2. Interdependence In this market model, since there is good substitute of the products, so the policies of one producer significantly affect the decisions making powers of other sellers. One can see Higher Cross Elasticity of Deman...