What does oligopolistic mean?
Oligopolistic describes a market or industry dominated by a small number of large participants rather than by many independent competitors. Such markets are not technically monopolies, because several firms can operate, but the limited number of firms gives each of them substantial market power. Competition may still occur, though it can take the form of strategic pricing, product differentiation, or cooperation among dominant companies. The term is especially common in economics, business, competition law, and industrial policy. It can also characterize the behavior of firms in such a market, as in the phrase “oligopolistic competition.” In everyday discussion, the word conveys a concern that a market gives a few powerful companies unusually strong control over prices, access, innovation, or entry for new businesses.
adjectiveCharacterizing a market or industry in which a small number of firms control most or all of the supply and competition. It may also describe the conduct or power of those firms.
- Relating to or characterized by an oligopoly, especially a market in which a small number of firms control most activity.
"The rapidly growing market became increasingly oligopolistic as three large companies expanded their control."
"The regulator alleged that the companies had formed an oligopolistic arrangement that suppressed competition."
"Small businesses struggled to enter an increasingly oligopolistic digital advertising market."
When a handful of companies dominate an entire market, competition may look strong on the surface while the real bargaining power sits with very few players.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does oligopolistic come from?
The word derives from the Greek roots oligos, meaning “few,” andopoly, from the Greek polēteia, meaning “government” or “rule,” and later poliein, “to sell.” The resulting term oligopoly was formed in the late 19th century to describe a market governed by a small number of sellers. The adjective oligopolistic developed from that noun and is now widely used in economic and legal contexts.
Related word forms
How oligopolistic is actually used
This is a formal economic and business term. It is usually used with words such as market, industry, competition, firms, and companies, and is more specific than the general idea of an unequal or uncompetitive market.
Easily confused with oligopolistic
An oligopoly is a market structure dominated by a few firms, whereas oligopolistic is an adjective describing that structure, its competition, or the behavior of the firms within it.
Monopolistic refers to a single supplier or an exceptionally dominant market, while oligopolistic generally refers to control or domination by several firms.