Is the U.S airline industry have the characteristics of an oligopoly?
No, the US airline industry is not an oligopoly at all. It is a competitive market, with many players competing for the same customers. In an oligopoly, there are a few sellers for the entire industry. These sellers are also known as oligopolists. For most oligopolies, any decision one seller makes, is influenced by what the response and reactions of the other parties in the oligopoly will be. There are several oligopoly’s in the US. The oil and media industries are two examples, and some consider the mobile telecommunications market an oligopoly as well. Oil and aircraft are two industries that also have worldwide oligopolies, since the markets are very difficult to enter, and the costs of starting a business in one of those industries is very high.
