oligopol

An oligopol (oligopoly in English) is a market structure characterized by a small number of firms that together hold a large share of the market. Because only a few competitors operate, each firm’s decisions affect the others, creating a high degree of interdependence. Products can be homogeneous or differentiated, and barriers to entry—such as high capital costs, control of essential inputs, network effects, or regulatory hurdles—limit new entrants.

Key features include concentration of market power among a few firms, significant but not total control, interdependence in strategic choices, and the possibility of collusion, whether formal or tacit. Price changes by one firm may lead rivals to adjust prices or output, contributing to price rigidity in some oligopolies. Firms may compete through non-price strategies such as advertising, product differentiation, or service quality.

Economic models of oligopoly include Cournot (competition on quantities), Bertrand (competition on prices), and Stackelberg (leader-follower dynamics). The kinked-demand curve model and game-theoretic approaches describe strategic behavior and potential paths toward collusion or intense competition.

Outcomes vary. Oligopolies can yield higher prices and profits relative to perfect competition, but competition and innovation can still be strong, especially with differentiated products or competitive threats. Welfare effects depend on efficiency, product variety, and the ease of entry.

Regulation and policy aim to maintain competitive pressures. Antitrust laws monitor mergers and coordinated behavior; regulation or policies that increase contestability may reduce market power and enhance consumer welfare.