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Economics vocabulary · Markets, Supply and Demand

Oligopoly

Meaning in economics, with examples

/ˌɒlɪˈgɒpəli/nounCommon term

In economics, oligopoly means: A market controlled by a small number of large firms, so each firm's decisions on prices and output affect the others.

In Turkish: oligopol

How it is used

Typical examples are airlines, mobile networks, cement and fuel distribution. Economists study oligopolies with game theory and watch for collusion, when firms secretly agree on prices. The adjective is oligopolistic. Competition authorities monitor these markets closely.

Example sentences

  1. The mobile phone market is an oligopoly with three main operators.

  2. In an oligopoly, a price cut by one firm is quickly matched by its rivals.

Common collocations

  • oligopolistic market
  • tight oligopoly
  • collusion
  • oligopoly pricing
  • monopolyA market in which a single firm is the only seller of a product with no close substitutes, which gives it the power to set prices.
  • competitionRivalry between firms that sell similar products and try to win the same customers, which tends to push prices down and quality up.
  • perfect competitionA theoretical market with many small sellers of an identical product, free entry and exit, and full information, so that no single firm can set the price.
  • market failureA situation in which a free market, left alone, does not produce an efficient outcome for society, so too much or too little of something is produced.

More terms: Markets, Supply and Demand

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This page explains English vocabulary for learners. It is not financial advice.