Mark-ups measure the extent price exceeds the marginal cost, and an increased mark-up suggests a firm has a better ability to raise and maintain price above the level that would prevail under competition. Globally, in 1984, US-based AT&Ts local telephone service was broken up into seven Baby Bells, giving consumers access to more choices and lower prices. However, by 2018, most of the Bells were together again as a single company called AT&T, which is currently the worlds largest telecommunications firm. Comparing the case of India, almost 90% of this sector is captured by leaders such as, The Tribune, ABP news etc. the decision of one producer totally influences the decision of other firms.

If a firm tries to reduce the price, the rivals will also react by reducing their prices. However, if it tries to raise the price, other firms might not do so. It will lead to loss of customers for the firm, which intended to raise the price. So, firms prefer non- price competition instead of price competition.

They facilitate electronic fund transfers and payments between cardholders, merchants, and financial institutions. In the area of smartphones and smartwatches, Google’s Android dominates, with more than 2.5 billion users. Android has become more popular than Windows due to the rise of smartphones in recent years. IOS is extremely successful in the United States; however, it has never managed close to half the popularity of Android on a global scale.

As a result, prices in this market are moderate because of the presence of a certain degree of competition. Under oligopoly, firms are in a position to influence the prices. However, they try to avoid price competition for the fear of price war. Price rigidity refers to a situation in which price tends to stay fixed irrespective of changes in demand and supply conditions.

Variable selling price

Air transportation is a thriving industry, taking millions of people to locations around the globe. Between 2009 and 2019, the global aviation industry’s revenue grew at a CAGR of 5.3%, reaching $838 billion in 2019. The three most-watched news channels in the US — News network Fox, Cable News Network, and MSNBC — battle to hit the top spot during prime time (8 pm and 11 pm).

So, every firm keeps a close watch on the activities of rival firms. Some examples of the Oligopoly Market are the Aviation Industry, Automobile Industry, Music Industry, Oil Industry, Steel Manufacturing, Grocery Chain Stores, Tire Manufacturing Industry, Pharmaceuticals, etc. To know more about the other  examples of the Oligopoly Market, visit Vedantu’s website or app where you can get free resources on this topic and much more. According to an Oxfam India spokesperson, in certain cases, large corporations do influence policy initiatives. “Let us not forget that it was not too long ago that India was ranked ninth in crony capitalism by The Economist,” he says.

The Oligopoly Market: Example, Types and Features Micro Economics

This structure type, unlike a monopoly, encourages the spirit of competition in the market. An Oligopoly Market is a system of Markets where there are more than one Vendor (or firm) for trading of a particular good but there are very few Vendors. This is imperfect competition as the decision of one Vendor affects the decision of others in the Market, although the competition is very limited. And identifies a price leader in the market, the other firms follow the price leader to maximize their benefits. The government must take essential efforts to expand the network of oligopolistic markets.

As of 2020, Apple and Samsung dominate the smartphone market in the country, with 46% and 25% percent of the market share. Next to these companies are LG and Motorola, with a market share of 12% and 7%, respectively. While a monopoly consists of only one company dominating a certain industry, an oligopoly contains two or more corporations having significant influence over the specific market. For example, market for cars in India is dominated by few firms (Maruti, Tata, Hyundai, Ford, Honda, etc.). A change by any one firm (say, Tata) in any of its vehicle (say, Indica) will induce other firms (say, Maruti, Hyundai, oligopoly examples in india etc.) to make changes in their respective vehicles. If the firms cooperate with each other in determining price or output or both, it is called collusive oligopoly or cooperative oligopoly.

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1. Let us take the media sector in the US, where 5-6 players are capturing almost 90% of this sector.
2. Next to these companies are LG and Motorola, with a market share of 12% and 7%, respectively.
3. Over 1999 and 2000, the Tata Group sold its stake in ACC to Ambuja.
4. In all these markets, there are few firms for each particular product.
5. A change by any one firm (say, Tata) in any of its vehicle (say, Indica) will induce other firms (say, Maruti, Hyundai, etc.) to make changes in their respective vehicles.

Hence, there is scope for competition, which makes businesses produce and sell better products than their rivals. As a result, consumers get better options at more reasonable prices. Oligopoly examples refer to instances that indicate how an oligopolistic structure affects a market. An oligopoly market is marked by the presence of small number of firms that coexist to compete.

The landscape of India’s cement oligopoly, in five charts

The threat of new entrants to this sector is the fairly limited reason being the whooping expenses that have to be met in developing a new drug. It means if they keep the same primetime on every channel, their viewership will be diversified. In that case, not a single player will be able to take the edge. So they follow through with their unity by looking out for the share of the same viewer base by mutually deciding the prime time for individual channels.

The entire computer technology market is globally dominated by two leaders named Apple and Windows. Due to their economic growth across the globe, no other firm is trying to enter in this sector. People often get asked if their preferred brand of soft drink is Coca-Cola or Pepsi.

Some of these include well-known or household names in key industries or sectors. Department of Justice, which claimed that the agency model restricted price competition. Eventually, the publishers reached a settlement, and the model’s impact went down. In 2021, the Biden administration expressed concern about the oligopoly in this industry. They announced a $52 billion investment plan to boost domestic semiconductor production and reduce the United States’ dependency on foreign semiconductor suppliers. A few corporations have substantial control over the production and destruction of agricultural chemicals.

But whether they tilt the balance in the market in their favour only time will tell. The process of consolidation would be expedited once the suspension of the insolvency law is lifted in March and more bankrupt companies come up for sale. More companies would be up for grabs when the government expedites its privatisation of some of the profitable public sector units (PSUs). Earlier in 2018, the CCI found Google violating the provisions of competition law for abusing its dominant position in the online search market and imposed a penalty of Rs 136 crore. Each of these companies could be considered part of an oligopoly in their respective industries. TSMC, for instance, creates chips for several large tech corporations, including Nvidia and Apple.