Economics Year 13 revision Day 9 - Oligopoly
On day 9 of the Year 13 recap we review the characteristics of an oligopoly market structure and the related concepts that stem from this.
Oligopolies describe a market structure where there are a small number of large firms that compete amongst each other in an industry. Some of the largest and most important industries in the UK are examples of oligopolies because there is often a high level of interdependency that exists between firms that compete.
This just means that even though these firms are independent of each other in terms of their legal structure, their strategies that they implement are dependent on each other’s strategies. This is what raises the prospect of collusion in an industry that is highly concentrated such as an oligopoly market structure.
Her Jack guides you through the revision slide on oligopolies: