Oligopoly
Definition. An oligopoly is a market structure dominated by a few large firms, each holding a significant market share, where high barriers to entry restrict new competition. Firms are mutually interdependent, meaning each firm must consider the likely reactions of rivals when setting price or output.
Oligopolists may compete or collude, and their interdependence often leads to price rigidity and a reliance on non price competition. The market may be illustrated using a kinked demand curve or game theory.
This term belongs to Oligopoly in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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