Review:
Oligopoly
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
Oligopoly is a market structure where a small number of firms have significant market power, leading to competition among them.
Key Features
- Few large firms dominate the market
- Barriers to entry exist
- Products may be homogeneous or differentiated
- Firms engage in strategic decision-making
Pros
- Encourages innovation and product differentiation
- Potential for economies of scale
- Competition can lead to lower prices for consumers
Cons
- Risk of collusion among firms leading to higher prices
- Potential for anti-competitive behavior
- Less competition compared to perfect competition