What Is The Oligopoly Market? Check Out Understanding, Types And Examples

Illustration of the oligopoly market (Photo: Pixabay/Makalu)

YOGYAKARTA What is the oligopoly market? The oligopli market is a place to sell and where goods sold are homogeneous even though the number of sellers is large and different. Competition in the oligopoly market is arguably not perfect, because commodities are controlled by only a few companies. This condition makes price competition unbalanced.

For more details, see the understanding of the oligopoly market, types, and examples in the following article summary.

According to Investopedia, the oligopoly market is a place for buying and selling, which only has a small capacity or only a handful, but it can significantly affect market conditions.

Meanwhile, in the Big Indonesian Dictionary (KBBI), the oligopoly market is defined as a market condition with only a small number of producers who provide goods, so that they can influence unbalanced market prices because it is influenced by a number of buyers.

From the two definitions above, it can be concluded that the oligopoly market is a market type that has an unbalanced number of producers or consumers.

In the oligopoly market, there are usually fewer producers than consumers. This condition makes the commodity controlled by several companies and the price competition in the market out of balance.

Until now, there is no definite provision regarding the large number of companies that are members of an oligopoly market. However, the number must be low enough so that the actions of one company significantly affect the other.

Although business competition in the oligopoly market is not healthy, in reality, the competition for a similar product between one manufacturer and another is very tight.

This happens because producers in the oligopoly market maintain product quality so that their brands are not inferior to competitors.

The oligopoly market is divided into several types, including:

Above, it has been mentioned that the oligopoly market is a market condition that is only occupied by several companies.

Here are some examples of the oligopoly market that are often found:

That's information about what the oligopoly market is. Hopefully this article can add insight to the loyal readers of VOI.ID.