Define an oligopoly as a concrete example. Which market characteristics are compatible with the concept of an oligopoly How important is advertising in this market? Is this consistent with what you’ve learned about advertising and oligopoly
The telecommunications sector is a real-world example of an oligopoly. This market consists of a few large corporations such as AT&T, Verizon, and T-Mobile who are able to maintain control over prices and production due to their sheer size and power in the marketplace. They also maintain their position by preventing smaller rivals from entering the market.
This is what makes an oligopoly. An oligopoly can be defined as a market structure that has few firms controlling pricing or other industry decisions. Important to remember that not every oligopoly is held by only three firms (as it was in this example), but that any situation where at least two companies have sufficient influence on the market such that none of the actors can win, and that the impact that the outcome has on its competition moving into the future.