MARKET STRUCTURES OLIGOPOLY Oligopoly Features of an oligopolistic

MARKET STRUCTURES OLIGOPOLY

Oligopoly • Features of an oligopolistic market structure: – Price may be relatively stable across the industry – kinked demand curve? – Potential for collusion – Behaviour of firms affected by what they believe their rivals might do – interdependence of firms – Goods could be homogenous or highly differentiated – Branding and brand loyalty may be a potent source of competitive advantage – Non-price competition may be prevalent – Game theory can be used to explain some behaviour – High barriers to entry

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