A quick summary of 4.1.5.5 Oligopoly of the AQA A Level Economics specification using the CGP guide, various websites, and class notes.
From the AQA A Level Economics specification:
• The main characteristics of oligopolistic markets.
• Oligopolistic markets can be very different in relati...
Summary: AQA A-Level Economics - 4.1.5.6 Monopoly and monopoly power
All for this textbook (9)
Written for
A/AS Level
AQA
Economics
4.1.5 Market Structures
All documents for this subject (4)
Seller
Follow
ruhina1
Reviews received
Content preview
4.1.5.5 Oligopoly
Oligopoly is a market structure with a small number of firms, none of which can keep the others
from having significant influence. The concentration ratio measures the market share of the largest
firms. Features of an oligopoly are:
• The market is dominated by a few large sellers!
• High barriers to entry/exit: so, it’s hard for new firms to enter the market.
• Differentiated goods: all goods must be similar but slightly different.
• Interdependence: one firm’s actions will directly affect another firm.
An oligopoly is either collusive or non-collusive. In a collusive oligopoly, firms collude to set the
same prices whereas firms in a non-collusive oligopoly compete to undercut each other on prices.
Collusion between firms is illegal but firms are still allowed to cooperate and work together.
Collusion - when two or more firms agree to limit competition. There are two types of collusion:
1) Overt/formal collusion is when there is a formal agreement between firms to collude. This
formal agreement will typically be kept hidden, because the CMA fines companies who are
found overtly colluding.
There are instances where overt collusion can be made public
○ Pablo Escobar - cocaine cartel
○ OPEC oil cartel - group of countries, not firms, so can get away with this
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ruhina1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.89. You're not tied to anything after your purchase.
