oligopoly Market, it's characteristics and types

What is oligopoly? 

An oligopoly is a market structure or market situation in which there are only few or enough sellers or producer of a particular product or commodity to provide in the market. There is a small number of firm in the oligopoly. There are two or more firms in the oligopoly there is no upper limit to the number of firms but the number must be low enough that the action of the firm influence others in the market.

An oligopoly consist with two Greek words oligoi which means a few and pollein which means to sell, does we can see a market in which two or more seller of the goods and services is called oligopoly. 

Characteristics of oligopoly

1..Small number of sailors

2..homogenous product

4.interdependence of sailors

5.price rigidity

6.uniformity of price 

7.inconsistency in forms 

8.uncertainty of demand curve 

9.entry and exit of firms

Types of oligopoly

1. Partial and full oligopoly :- these are the types of oligopoly, in partial oligopoly one form as a leader and rest of the firm follow it. And in the full oligopoly there is no firm dominating as the price leader in the market. 

2. perfect and imperfect oligopoly :- we are the types of oligopoly in which if the commodities or homogeneous  then it is called perfect or pure oligopoly. On the other hand imperfect oligopoly in which products or services are differentiated and are close substitute. 

3. syndicated and organized oligopoly:- syndicated and organized oligopoly are the types of oligopoly in which when the products are sold through centralized Syndicate then it is called syndicated oligopoly. Where when the forms organise themselves into a central Association to determine price output and quota of the service and goods than the situation is called organized oligopoly. 

4. open or closed oligopoly:- these are the types of oligopoly on the basis of possibility of entry of new forms in the market. In the open oligopoly new firms are free to enter. Into the industry, On the other hand enclosed oligopoly there is few forms dominate the market and new forms do not have a free entry into the industry. 

5. collusive and non collusive oligopoly:- these are the types of firms where collusive oligopoly is a situation of market in which forms follow a common price policy. And when there is no agreement or understanding between the firms in the industry it is called Non-collusive oligopoly.