oligopolien

Oligopoly is a market structure characterized by a small number of firms that dominate an industry. These firms possess significant market power, allowing them to influence prices and output levels. The defining feature of an oligopoly is the interdependence of these firms. The actions of one firm, such as changing prices or introducing a new product, can have a substantial impact on its competitors, leading them to react in kind.

Key characteristics of an oligopoly include a high degree of market concentration, where a few companies control a large percentage of the total market share. Barriers to entry are typically high, making it difficult for new firms to enter the market and compete. These barriers can include economies of scale, high capital requirements, patents, or brand loyalty. Products offered in an oligopolistic market can be either homogeneous, like basic industrial goods, or differentiated, such as in the automobile or telecommunications sectors.

Due to the interdependence of firms, strategic decision-making is crucial in an oligopoly. Firms may engage in price leadership, where one dominant firm sets the price, and others follow. Collusion, either overt or tacit, is also a possibility, where firms attempt to coordinate their actions to reduce competition and increase profits, though this is often illegal. Alternatively, firms may compete through non-price strategies like advertising, product innovation, or service quality. The outcome of these competitive or cooperative strategies can vary, leading to different levels of consumer welfare.