Section 1
Prerequisites of Oligopoly
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
4 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/20330/square/cellphonetower-or.jpeg)
Few Sellers
An oligopoly - a market dominated by a few sellers - is often able to maintain market power through increasing returns to scale.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20370/square/coca-cola-exhibit.jpeg)
Product Differentiation
Oligopolies can form when product differentiation causes decreased competition within an industry.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20372/square/h-oqa-takeoff-heathrow-arp.jpeg)
Entry Barriers
One important source of oligopoly power are barriers to entry: obstacles that make it difficult to enter a given market.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20374/square/francisco-2c-california-01.jpeg)
Price Leadership
Price leadership is a form of tacit collusion that oligopolies may use to achieve a monopoly-like market outcome.