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A duopoly (from Greek δύο, duo ' two '; and πωλεῖν, polein ' to sell ') is a type of oligopoly where two firms have dominant or exclusive control over a market, and most (if not all) of the competition within that market occurs directly between them. Duopoly is the most commonly studied form of oligopoly due to its simplicity.
The distinguishing characteristic of a duopoly is a market featuring solely two firms. Competition in a duopoly can vary due to what is being set in the market: price or quantity (see Cournot competition and Bertrand competition). It is generally agreed that a duopoly will feature higher barriers to entry than an oligopoly, as firms within a ...
Duopoly: Oligopoly: Buyers: Monopsony: Duopsony: Oligopsony: In economics, a duopsony is a market structure in which only two buyers substantially control the ...
Duopoly, a case of an oligopoly where two firms operate and have power over the market. [8] Example: Aircraft manufactures: Boeing and Airbus. A duopoly in theory could have the same effect as a monopoly on pricing within a market if they were to collude on prices and or output of goods.
The boundaries of what constitutes a market and what does not are relevant distinctions to make in economic analysis. In a general equilibrium context, a good is a specific concept including geographical and time-related characteristics. Most studies of market structure relax a little their definition of a good, allowing for more flexibility in ...
Two different types of cost are important in microeconomics: marginal cost and fixed cost.The marginal cost is the cost to the company of serving one more customer. In an industry where a natural monopoly does not exist, the vast majority of industries, the marginal cost decreases with economies of scale, then increases as the company has growing pains (overworking its employees, bureaucracy ...
In some countries, this has led to allegations of abuse, unethical and illegal conduct. [ 3 ] The situation in Australia is a good example since two retailers, Coles and Woolworths control 70% of the national food market.
Cournot's model of competition is typically presented for the case of a duopoly market structure; the following example provides a straightforward analysis of the Cournot model for the case of Duopoly. Therefore, suppose we have a market consisting of only two firms which we will call firm 1 and firm 2.