The oligopolistic environment consists of few
marketers/producers which influence the supply and price of
goods/service in a given economy. These few producers cooperate
with each other to benefit as a whole in the market, this can
influence the price. Examples of the oligopolistic economy are News
media and National mass media, Operating systems of smartphones and
computers and automobile companies. Like monopoly, Oligopoly also
has a relatively high barrier for new entrants.
The firms within
the oligopolistic
market structure exercise
their market power as -
- The producers that exist in an oligopolistic market are the
price & trend, and generally, form partnerships and deals that
develop prices that are higher than the competitor's marginal
costs. oligopoly companies set prices to escalate their own profit.
Ultimately, it lends to partnerships and collaborations that foster
success for themselves and other firms, specifically smaller
companies operating within the same market or industry.
- The producers that exist in an oligopolistic market are the
price & trend, and generally, form partnerships and deals that
develop prices that are higher than the competitor's marginal
costs. oligopoly companies set prices to escalate their own profit.
Therefore it leads to partnerships and collaborations that promote
success for themselves and other firms, specifically smaller
producers operating within the same market/industry.
- It is difficult to find a way for the new entrants into
oligopolistic markets that already exist. It is because of two
significant factors: few well-established and successful large
companies already dominate the space and the companies which offer
well-known goods/services.
- For new producers with similar goods/services, making a tunnel
into an oligopolistic market is difficult. The only new entrant
that manage to do so are those with significant funding; an
oligopolistic market requires large amounts of capital to operate
because the economies of scale generally ensure that there is no
change in the status of the existing companies.