What is oligopoly?

Oligopoly markets are markets dominated by a small number of suppliers/firms/sellers dealing with either homogeneous or differentiated products with each seller having substantial share of the market

Oligopoly characteristics include high barriers to new entry, price-setting ability, the interdependence of firms, maximized revenues, product differentiation, and non-price competition.

Examples of imperfect oligopoly i.e. these deal with similar but differentiated commodities

• Producers of oil product e.g. Caltex, shell, Totalenergies.
• mobile phone network providers e.g. MTN, Airtel
• soft drinks
• beer industries e.g. Nile breweries , Uganda breweries

• low level of competition;
• high potential to receive big profits;
• a great demand for products and services controlled through oligopolies;
• a limited number of companies makes it easier for customers to compare and choose products;
• more competitive prices;