Oligopoly (Noun)
Meaning
(economics) a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors.
Classification
Nouns denoting natural processes.
Examples
- The airline industry is a classic example of an oligopoly, with a handful of major carriers controlling the majority of the market share.
- The high concentration of market share among a few large players in the tech industry has led to accusations of oligopoly and anti-competitive practices.
- In an oligopoly, each firm has some degree of price-setting power, but must also consider the potential reactions of its competitors.
- The oil industry is often cited as an example of a global oligopoly, with a small number of large producers controlling the majority of the world's oil supply.
- The lack of competition in the oligopoly market can lead to higher prices and reduced innovation, as firms have less incentive to invest in research and development.