Oligopoly

Characteristics of Oligopolies:

• A few large producers (less than 10)
• Identical or differentiated products
• High barriers to entry
• Control over price (Price Maker)
• Mutual Interdependence - Firms use Strategic Pricing

How do markets become oligopolies?

Oligopolies occur when only a few large firms start to control an industry.
High Barriers to Entry keep others from entering.

Types of Barriers to Entry

1. Economies of Scale
2. High Start-Up Costs
3. Ownership of Raw Materials

Oligopoly didn't have any graph, however, should understand Game Theory.

相关笔记

Collusion
Dominant Strategy
Game Theory
Nash Equilibrium
Comparison Table of The 5 Market Structure