Economy

What is oligopoly? »Its definition and meaning

Anonim

The oligopoly is a neologism formed with Greek roots, its lexical components are '' oligos' ' little, ' 'polein' ' sell, so oligopoly means ' few sellers''. The oligopoly is a market served by few oligopolistic or oligopolistic sellers or service providers. In the event that there are few participants in the markets, each oligopoly is aware of the actions of its competitors. The decisions of a company cause influences or affect the decisions of the others, for this reason a balance is established in the group because it isunthinkable and impossible for each company to be independent from another and thus cease to be a market competition.

The oligopoly supposes the existence of different companies in a market that offer the same product, but in no way can they impose themselves on the market because otherwise that situation would lead to the appearance of a monopoly. In this case, if the fight between them appears so that they can take most of the market share where companies make strategic decisions, taking into account the strength and weaknesses of the business structures of each of their competitors, but it is very important in the case of oligopoly, due to the lack of real competition because that would affect consumers.

The oligopoly is characterized, by the reduction of the extension, the quantity or the intensity of the commercial struggles, more than everything when the progress of the and of the packaging allows to artificially defer the products, but each time making it more difficult for the consumers to choose..