Introduction to Oligopoly Markets: Characteristics and Pricing Strategies

The video tutorial explores the concept of oligopoly, a market structure characterized by a small number of large firms. It contrasts oligopoly with competitive and monopolistic markets, highlighting features like market power, interdependency, and product differentiation. Examples of oligopolies include mobile networks and video game platforms. The tutorial also discusses market concentration, barriers to entry, and strategic interdependency among firms. It covers collusion, price wars, and pricing strategies like predatory and limit pricing, emphasizing the importance of strategic decision-making in oligopoly markets.

How do firms in an oligopoly differentiate their products?

Explain the concept of price wars in oligopoly markets.

What is predatory pricing and how is it used in oligopoly markets?

Describe limit pricing and its significance in an oligopoly.