An oligopoly is a market in which relatively few sellers supply many buyers, each seller recognising that he can control his prices to a certain extent and that his competitors' actions will influence his profits. This is a departure from the assumption, in perfect competition, that there are a large number of firms in any particular market. If there are only a few firms, each one may be able to influence the market price by controlling the amount they produce, thus earning higher profits.
Oligopoly is a common feature of the real world; studies have shown that in developed countries markets tend to become more oligopolistic. There is some doubt, however, as to whether prices really are higher under oligopoly. Research Oligopoly
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Matt and Leela Probert
Abbreviations
Money
Research Oligopoly
