oligopoly
C2Formal, Technical, Academic
Definition
Meaning
A state of limited competition in a market where a small number of sellers dominate.
An economic and market structure where a few firms control the majority of the market share and can significantly influence prices and market conditions, often leading to reduced competition, collusion, and higher prices for consumers.
Linguistics
Semantic Notes
The term specifically refers to the market condition, not the firms themselves (which are 'oligopolists'). It implies interdependence among the few major players; the actions of one firm directly affect the others. Often contrasted with monopoly (one seller) and perfect competition (many sellers).
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage. Spelling and pronunciation are consistent.
Connotations
Equally negative in both regions, implying reduced competition and potential harm to consumers.
Frequency
Slightly higher frequency in American English due to its larger business/finance media landscape, but the term is standard in economics globally.
Vocabulary
Collocations
Grammar
Valency Patterns
[Verb] + oligopoly: form, create, establish, maintain, regulate, dismantle[Adjective] + oligopoly: tight, loose, global, domestic, natural, virtualoligopoly + [Prepositional Phrase]: in the market, of the industry, among firmsVocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “[No common idioms for this technical term]”
Usage
Context Usage
Business
Used in strategy discussions, market analysis, and regulatory complaints. 'The mobile network operators operate as a tight oligopoly, keeping prices artificially high.'
Academic
A core concept in microeconomics and industrial organization courses. 'The model predicts collusive behaviour in a repeated-game oligopoly.'
Everyday
Rare. Might appear in news commentary about high prices in certain industries (e.g., energy, broadband). 'People complain about fuel prices, but it's basically an oligopoly.'
Technical
Precise use in economics, antitrust law, and regulatory policy documents. 'The Herfindahl-Hirschman Index is used to measure the degree of oligopoly in a sector.'
Examples
By Part of Speech
verb
British English
- The market is becoming increasingly oligopolised, to the detriment of consumers.
American English
- The industry has been oligopolized by three major players.
adverb
British English
- The firms behaved oligopolistically, matching each other's price increases.
American English
- The market functions oligopolistically, with little price competition.
Examples
By CEFR Level
- [Not typically taught at A2 level]
- A few big companies control the market. This is called an oligopoly.
- The aviation industry is often described as an oligopoly, with a handful of major carriers dominating long-haul routes.
Learning
Memory Aids
Mnemonic
Think: 'OLI' (a few) + 'GOPOLY' (sounds like 'monopoly'). A few companies have a monopoly-like control.
Conceptual Metaphor
MARKET AS A CLOSED CLUB (A small, exclusive group controls entry and rules).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Do not confuse with 'олигархия' (oligarchy), which is a political system ruled by a few. 'Олигополия' is the direct equivalent.
Common Mistakes
- Using 'oligopoly' to refer to the firms rather than the market structure (correct: 'oligopolists').
- Confusing with 'monopoly' (one seller vs. a few sellers).
- Misspelling as 'oligopoly' (correct: oligopoly).
Practice
Quiz
Which of the following is the BEST example of an oligopoly?
FAQ
Frequently Asked Questions
A monopoly has only one seller dominating a market, while an oligopoly has a small number of sellers who are interdependent.
Not inherently. The market structure itself is not illegal, but specific anti-competitive behaviours that often occur within oligopolies (like price-fixing) are illegal under antitrust laws.
The commercial aerospace manufacturing sector, dominated by Airbus and Boeing, is a classic example of a duopoly (a two-firm oligopoly).
A market that tends towards an oligopoly due to high fixed costs or significant economies of scale, making it inefficient to have many small competitors (e.g., semiconductor manufacturing).