A Business Encyclopedia

Types of Oligopoly Market

Definition: The Oligopoly is a market structure wherein few sellers dominate the market and sell the homogeneous or heterogeneous products.

Types of Oligopoly Market

Oligopoly Market

  1. Open Vs Closed Oligopoly: This classification is made on the basis of freedom to enter into the new industry. An open Oligopoly is the market situation wherein firm can enter into the industry any time it wants, whereas, in the case of a closed Oligopoly, there are certain restrictions that act as a barrier for a new firm to enter into the industry.
  2. Partial Vs Full Oligopoly: This classification is done on the basis of price leadership. The partial Oligopoly refers to the market situation, wherein one large firm dominates the market and is looked upon as a price leader. Whereas in full Oligopoly, the price leadership is conspicuous by its absence.
  3. Perfect (Pure) Vs Imperfect (Differential) Oligopoly: This classification is made on the basis of product differentiation. The Oligopoly is perfect or pure when the firms deal in the homogeneous products. Whereas the Oligopoly is said to be imperfect, when the firms deal in heterogeneous products, i.e. products that are close but are not perfect substitutes.
  4. Syndicated Vs Organized Oligopoly: This classification is done on the basis of a degree of coordination found among the firms. When the firms come together and sell their products with the common interest is called as a Syndicate Oligopoly. Whereas, in the case of an Organized Oligopoly, the firms have a central association for fixing the prices, outputs, and quotas.
  5. Collusive Vs Non-Collusive Oligopoly: This classification is made on the basis of agreement or understanding between the firms. In Collusive Oligopoly, instead of competing with each other, the firms come together and with the consensus of all fixes the price and the outputs. Whereas in the case of a non-collusive Oligopoly, there is a lack of understanding among the firms and they compete against each other to achieve their respective targets.

Thus, oligopoly market is a market structure that lies between the monopolistic competition and a pure monopoly.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

social factors affecting appledefine reverse repo ratepoach meaningreinforcement theory definitiondef of entrepreneurethnocentric definitionsunk cost meaningperfectly elastic demand meaningtheories on organisational structureherz definitionunion bank neftmeaning of classical conditioningdefinition parachuteaverage debtors collection periodstatutory liquidity ratio slrmiller modigliani theoremethnocentric approachcollusive oligopolydefinition hrmneoclassical perspectivedefine moratoriumsreport on opening a demat accountmeaning of monopolistic marketdemocratic or participative leadershipdefine psychologicallywhat is the meaning of memorandadebenture defsocial cost benefit analysis meaningechelons meaning in hindimeaning of microfinancemeaning of imperfect marketdefinition oligopolymotivation and hygiene factorshrm meansjob enlargement advantagesdefinition stepping stonewhat causes fluctuations in the business cycleansoff matrix strategyblake and mouton's leadership gridfeatures of duopoly market structuremeaning of decoding in communication processprinciple of diminishing marginal utilitydefine hedging financedisadvantages of time series forecastingasset turnover calculatorpricing strategy definition marketinghow to calculate profitability indexapproaches to ihrmprobability sampling techniques examplesliquidating dividend definitionexplain hrmus treasury bills definitiondefine cardinal utilityclassification of elasticity of demandwhat is demand pull inflationequity linked savings schemes elssnarrow hindi meaningteleological utilitarianismresonance structures definitionimportance of manpower planning in organisationlaissez faire defmonopolistic market meaningvictor vroom motivation theorytheories of wages in labour economicsdefine etailingmeaning of imitating in hindielastic demand definition economicshindi meaning of spanmsf rbipavlov theory of learningthe institute of company secretaries of india icsimanpower planning stepscost push shocknominal gross domestic product formulastandard error of sampling distributioncobb douglas production function graphtheory of egoismdelphi technique of decision makingcontractionary monetary policy definitionfmcg products means