Knowledge Center

Summary, forum, best practices, expert tips and information sources.

11 items • 53.398 visits



Definition Oligopoly? Meaning.

In an oligoply there are only a small number of competitors in the market

An Oligopoly is the market situation or structure in which a small number of producing and selling companies supply a high percentage of the market.

Typical for oligopolists is that the decisions and strategies of one firm influence, and are influenced by, the decisions of other firms. As a result, the firms operate economically under imperfect competition. This typically gives them the possibility to make pricing agreements and/or reduce production (Cartel). When one firm has a dominant position in the market the oligopoly may experience price leadership. The firms with lower market shares may simply follow the pricing changes prompted by the dominant firm. On the other hand, sometimes competition between sellers in an oligopoly can be fierce.

As a rule of thumb, when the four largest firms in an industry have a total market share of more than 40%, the four companies making up this market share are considered oligopolists.

The term should not be confused with Oligopsony: the market situation or structure in which the number of buyers are small and powerful.

As a result of fierce competition, in developed countries oligopolies can be found in many sectors. Examples of oligopolies include the aircraft, cellular phones, computer chips, cars, cigarettes and detergents industries.

Special Interest Group

Oligopolies Special Interest Group.

Special Interest Group
Special Interest Group (10 members)


Forum about Oligopolies. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.

🔥 Oligopolies in Oil Industry?
Question: Is the oil industry considered as an example of oligopoly? Thank you....
Comments1 comments
topic Examples of Oligopolies
I am looking for some examples of oligopolies. Thanks.. ...
Comments1 comments

Start a new topic

Start a new topic about Oligopolies

Best Practices

The best, top-rated topics about Oligopolies. Here you will find the most valuable ideas and practical suggestions.

Expert Tips

Advanced insights about Oligopolies. Here you will find professional advices by experts.

Information Sources

Various sources of information regarding Oligopolies. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Research Links

Jump to further research sources regarding Oligopolies.













Compare with: Horizontal Agreement  |  Vertical Agreement  |  Cartel  |  Horizontal Integration  |  Horizontal Merger  |  Five Forces  |  ADL Matrix  |  Penetration Pricing  |  Competitive Pricing  |  Barriers to Entry  |  Competitive Environment  |  Competitive Position  |  Sustainable Competitive Advantage

Special Interest Group

Special Interest Group

Do you know a lot about Oligopolies? Become our SIG Leader and gain worldwide recognition as an expert.


Return to Management Hub: Finance & Investing  |  Marketing & Sales  |  Strategy & Innovation  |  Supply Chain & Quality

More on Management  |  Return to Management Dictionary


This ends our Oligopoly summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.3 - Last updated: 26-9-2023. All names of their owners.

12manage is looking for BA/MBA students. More info.