What is Oligopoly Market Structure?
The oligopoly market structure is better understood if a person analyzes its properties. Oligopoly market structure characteristics are quite similar to that of a monopoly; the only difference being that the market is controlled by a few producers. The infinite or rather large number of buyers, often put these producers in quite an advantageous situation, due to the fact that buyers have less alternatives to choose from. Monopoly and oligopoly market structures give the producers a head on advantage of assured revenue. This assured revenue basically arises due to the lack of alternative goods or services. This situation is quite advantageous to producers as it gives them a great opportunity to inflate the prices of their goods. In some cases this may also work in a reverse manner as in an attempt to attract more consumers, the producers will reduce the prices, eventually leading to a deflated general price level. The assumption that every element (producers and buyers) has a perfect kn
