Oligopoly

What is oligopoly? Is it same like monopoly? No but quite same.

Monopoly only has one but oligopoly has few company that make up a industry. The selected few company can control the price. Almost like monopoly, An oligopoly has few high barrier to enter. The product that the company produce are usually identical Company A produce 50 product and its competitor company B Produce the other 50, The prices of the two brands will be interdependent and, So, if Company A starts selling the product at a lower price, it will get a greater market share, thereby forcing Company B to lower its prices as well. 

Four characteristics of an oligopoly industry are

1. Few sellers.
There are just few sellers who control  most of the sales in the industry.
2. Barriers to entry.
Oligopoly firms are  benefit from economies of scale
3. Interdependence.Oligopoly firms are large relative to the market in which they operate. If one oligopoly company changes its price of a product , it will significantly impact the rival firms.
4. Prevalent advertising.
Oligopoly firms usually advertise on a national scale. NBA finals and NCAA March Madness commercials include advertising by oligopoly firms.

Below are few of the example of oligopoly company in malaysia

Digi, Maxis and celcom are the three biggest telecommunication company