"sign-up": "https://dictionary.cambridge.org/auth/signup?rid=READER_ID", { bidder: 'triplelift', params: { inventoryCode: 'Cambridge_SR' }}, { bidder: 'ix', params: { siteId: '195464', size: [120, 600] }}, userIds: [{ Oligopolies in history include steel manufacturers, oil companies, railroads, tire manufacturing, grocery store chains, and wireless carriers. enableSendAllBids: false, The economic and legal concern is that an oligopoly can block new entrants, slow innovation, and increase prices, all of which harm consumers. { bidder: 'ix', params: { siteId: '195466', size: [728, 90] }}, The competing firms are few in number but each one is large enough so as to be able to control the total industry output and a moderate. The word in the example sentence does not match the entry word. { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_rightslot2' }}, { bidder: 'sovrn', params: { tagid: '346693' }}, Changing this condition makes a large difference, because rivals can base their behavior on each other’s actions without worrying about potential competitors who aren’t currently in the industry. { bidder: 'sovrn', params: { tagid: '346698' }}, If the firm lowers price P < MC then it will be losing money on every unit sold.[17]. It is interesting to note that both the problem of maintaining an oligopoly and the problem of coordinating action among buyers and sellers in general on the market involve shaping the payoffs to various prisoner's dilemmas and related coordination games that repeat over time. var mapping_topslot_a = googletag.sizeMapping().addSize([746, 0], []).addSize([0, 550], [[300, 250]]).addSize([0, 0], [[300, 50], [320, 50], [320, 100]]).build(); A command economy is a system where the government determines production, investment, prices and incomes. Such competition can be waged through prices, or through simply the individual company expanding its own output brought to market. { bidder: 'sovrn', params: { tagid: '346693' }}, { bidder: 'onemobile', params: { dcn: '8a969411017171829a5c82bb4deb000b', pos: 'cdo_btmslot_300x250' }}, { bidder: 'openx', params: { unit: '539971079', delDomain: 'idm-d.openx.net' }}, Add the power of Cambridge Dictionary to your website using our free search box widgets. The Sherman Antitrust Act is a landmark U.S. law, passed in 1890, which outlawed trusts—monopolies and cartels—to increase economic competitiveness. ga('require', 'displayfeatures'); The principle problem that these firms face is that each firm has an incentive to cheat; if all firms in the oligopoly agree to jointly restrict supply and keep prices high, then each firm stands to capture substantial business from the others by breaking the agreement undercutting the others. Usage explanations of natural written and spoken English, 0 && stateHdr.searchDesk ? bids: [{ bidder: 'rubicon', params: { accountId: '17282', siteId: '162036', zoneId: '776130', position: 'btf' }}, There is nothing to guarantee an even split. Hence, the market share originally gained by having dropped the price will be minimised or eliminated. { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_btmslot' }}, } Cambridge Dictionary +Plus { bidder: 'pubmatic', params: { publisherId: '158679', adSlot: 'cdo_btmslot' }}]}, What is the definition of oligopoly? Oligopoly is the { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_topslot' }}, }, Mr Mosho said that commercial banks might be colluding making the market into an oligopoly with little benefit to the consumers. { bidder: 'criteo', params: { networkId: 7100, publisherSubId: 'cdo_btmslot' }},