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An oligopoly is a market structure with a limited number of enterprises, none of which can prevent the others from having major impact.
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Oligopolistic markets or oligopolies are characterized by the dominance of a small number of firms over a large number of competitors in a given market or sector.
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These firms often provide products and services that are comparable to those of their competitors.
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In a market characterized by oligopoly, there are so few companies competing for customers that the level of competition is minimal.
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This makes it possible for any company to be profitable.
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In most cases, the circumstances give rise to frequent collaborations between companies and helps to cultivate a culture of cooperation.
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Oligopolies may be formed, maintained, or dissolved as a result of economic, legal, and technical issues.
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These variables can all interact with one another.
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Oligopolies have significant challenges in the form of the pris dilemma, which is experienced by each participant and fosters dishonesty on the part of all participants.
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The pris dilemma is the idea that two people are arrested for burglary, and they are each questioned in separate rooms away from each other and have no way of knowing what the other person is saying.
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You are offered this deal.
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The deal is, if both of you say nothing, neither one of you does any prison time because they don't have any actual concrete proof.
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They are looking for one of you or both of you to give each other up.
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So if neither one of you say anything, you're both off.
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You do no time.
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If you say something first before the other guy, then you'll get five years, but they'll get 10.
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And vice versa...