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The
Petrol
Market
-
Oligopoly
-
What
are
the
main
features
of
an
Oligopoly?
•Product
branding:
Each
firm
in
the
market
is
selling
a
branded
product.
•Entry
barriers:
Entry
barriers
maintain
supernormal
profits
for
the
dominant
firms.
It
is
possible
for
many
smaller
firms
to
operate
on
the
periphery
of
an
oligopolistic
market,
but
none
of
them
is
large
enough
to
have
any
significant
effect
on
prices
and
output
•Inter-dependent
decision-making:
Inter-dependence
means
that
firms
must
take
into
account
the
likely
reactions
of
their
rivals
to
any
change
in
price,
output
or
forms
of
non-price
competition.
•Non-price
competition:
Non-price
competition
is
a
consistent
feature
of
the
competitive
strategies
of
oligopolistic
firms.