What is Oligopoly? Give some examples of oligopolistic markets.

What is Oligopoly? Give some examples of oligopolistic markets.

In an oligopolistic market, a few suppliers control the market by not allowing any new entrants to the market. A change in price by one supplier in the market will generate instant response by the other supplier who will also tend to change his price. So in this market, there is a high level of dependency amongst suppliers on one another. Examples of such markets maybe the automobile manufacturers or pharmaceutical industry which are generally price sensitive by nature.