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Oligopoly Market structure refers to a small number of firms dominating an industry.
In the Oligopoly Market, all the interdependent firms dominate and influence the market collectively.
Collusive and Non-Collusive Oligopoly
Collusive Oligopoly refers to a situation where organizations cooperate to determine either/both price and output whereas in a Non-Collusive Oligopoly situation the firms compete with each other instead of cooperating.
Price Rigidity or Kinked Demand Curve
Kinked Demand Curve is one in which the segment above the market price is considered more elastic than the one below it.
Equilibrium of a Firm
Equilibrium of a Firm is a situation where an organization has to produce a specific level of output to obtain optimal profit.
Collusive Oligopoly-Cartel Formation
Collusive Oligopoly-Cartel Formation is a situation where firms form a cartel to avoid price wars and competition
Collusive Oligopoly may take different forms
Non-Price Competition
Non-Price Competition or covert cheating includes additional facilities, secret discounts and secret benefits to consumers or retailers.
Quota
Every organization in an oligopoly structure agrees to a price and output quota which is contingent on its records
Price Leadership
Price Leadership occurs when the market leader in a specific sector sets the product price for the whole sector
Dominant-firm Leadership
Dominant firm Leadership occurs when one organization has the advantage of producing the largest output and has the power to influence the market price and total output based on demand
Low-cost firm Leadership
Low-cost firm Leadership sets the price that other firms with higher production are forced to accept
Barometric-price Leadership
In Barometric-price Leadership the barometric firm understands the market and set the prices based on completion, cost and demand
Aggressive-price Leadership
In Aggressive-price Leadership a dominant company creates aggressive price policies and force competitors to accept them
Limitations of price Leadership
1. Non-price competition
2. Product differentiation
3. Differences in production cost
This video is on Oligopoly Market and it has the following sub-topics.
Time Stamps
0:00 Introduction to Oligopoly Market
00:53 Collusive Oligopoly Collusive and Non
01:18 Price Rigidity or Kinked Demand Curve
02:52 Equilibrium of a Firm
03:31 Cartel Formation Collusive Oligopoly
04:07 Collusive Oligopoly may take different forms
04:37 Price Competition Non
04:49 Quota
05:01 Price Leadership
05:11 Dominant firm Leadership
05:27 cost firm Leadership Low
05:40 Barometric price Leadership
05:54 Aggressive price Leadership
06:12 Limitations of price Leadership
