Example of Oligopolistic Markets...? Watch

2strong
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What market/s are oligopolistic? And just to clarify, an oligopoly means when several firms have market power(regardless of how many other firms there are in the market)?. So for example, the Sports Clothing market is oligopolistic, because you have Nike, Adidas, Puma, Umbro, and then several smaller lesser known firms, so thats an example of an oligpolistic market right?

Thanks!
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meenu89
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http://www.bized.co.uk/educators/16-.../structure.htm
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Collingwood
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I can't think of a market that isnt 'oligopolistic' by that definition. Undertaking, perhaps?
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Baby-H
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Supermarkets
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sammyrj
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Video game hardware is a great example: Nintendo, Sony and Microsoft dominate. It was even used in an exam a few years back.
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nugax
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Oil. Diamonds. Arguably airlines.
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geton
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(Original post by 2strong)
What market/s are oligopolistic? And just to clarify, an oligopoly means when several firms have market power(regardless of how many other firms there are in the market)?. So for example, the Sports Clothing market is oligopolistic, because you have Nike, Adidas, Puma, Umbro, and then several smaller lesser known firms, so thats an example of an oligpolistic market right?

Thanks!
An oligopolistic market is one where a small number of interdependent firms compete with each other.

Supply in the industry must be concentrated in the hands of relatively few firms. For instance, an industry where the three largest firms produce 80% of output would be oligopolistic.


And make sensible example(s) from here
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mulu89
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good answer, though i would add that the actual degree of concentration is not necessarily 3 firms to 80% of the market. Many books put it as 3 firms to 50%, though that is nitpicking.
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Collingwood
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The whole thing seems fairly arbitrary.
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2strong
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hmmmm apparently the four-firm concentration ratio has to be greater than 40% for it be officially an oligoplostic market
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prash_s90
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chain of retailers such as asda, tesco, sainsburys could be classed as oligopolistic markets, but not strictly speaking
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sammyrj
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(Original post by prash_s90)
chain of retailers such as asda, tesco, sainsburys could be classed as oligopolistic markets, but not strictly speaking
The supermarket industry is definitely oligopolistic.
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prash_s90
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(Original post by sammyrj)
The supermarket industry is definitely oligopolistic.
yep i was just meaning that 40% thing that 2strong was saying
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Greg.
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The brewing industry?
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Juustuburger
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The definition is when a market is dominated by a select few companies.

The typical examples used are:

Supermarkets (ASDA, Tesco, Sainsburys and Morrisons)
Video gaming consoles (Nintendo, Microsoft, Sony)
Soft drinks (Mars, Pepsi and Coca-Cola)
Fast food (McDonald's, Burger King, KFC)

Supermarkets, for example - There is Netto, Aldi, Lidl and so on, but the market is still dominated, as is shown by how much of the market share the big four have.

Likewise, in video gaming consoles - There was the NGear and Dreamcast, but they don't mean it isn't an oligopoly.
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Nuheen
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Cell phone market is a good example. Both handset wise and connections.
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ThunderBolt
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Aircraft Production - Boeing vs Airbus
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Juustuburger
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(Original post by ThunderBolt)
Aircraft Production - Boeing vs Airbus
If we're being technical (and at higher levels, maybe it matters), that would be polyopoly rather than an oligopoly as it's between two.
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Sports Racer
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(Original post by Juustuburger)
If we're being technical (and at higher levels, maybe it matters), that would be polyopoly rather than an oligopoly as it's between two.
Surely then it's a duopoly?
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mulu89
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i think it would be a duopoly and an oligopoly. in my view a duopoly is a more specific form of oligopoly.

though its all just names
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