OligopolyCHAPTER16
ExamplesofOligopolyThese10industriesareexamplesofoligopoly.Theyhaveasmallnumberoffirms,showninbracketsafterthenameoftheindustry.
ExamplesofOligopolyThebarsmeasurethepercentageofindustrytotalrevenuereceivedbythe20largestfirms.
ExamplesofOligopolyThenumberontherightistheHerfindahl-HirschmanIndex.
OPECGlobalOilCartelOPECwascreatedinthe1960s.
Itsobjectivecanbeinterpretedas“restrictingtheproductionofoiltokeepthepricehigh.”Thepriceofoilincreasedfrom$7abarrelin1970to$55abarrelin1981.
OPECGlobalOilCartelDuringthe1980s,newsourcesofoilsupplyopenedup,andOPEClostcontroloftheglobalmarket—thepricetumbled.During2004and2005,OPECagaindominatedthemarket,restrictedsupply,andraisedtheprice.
DuopolyinComputerCPUsTheCPUchipinyourcomputerorgameboxismadeeitherIntelCorporationorAdvancedMicroDevices(AMD).Inteldominatesthismarketasthepiechartsshow.
ThegraphshowsthepricesofsomeofthemostpopularCPUchipsinMay2005.DuopolyinComputerCPUsAtcomparableclockspeeds,AMDchipsarepricedhigherthanIntelchips,butIntelmakesthefastestchips.
CompetitionbetweenIntelandAMDisliketheduopolists’dilemma.DuopolyinComputerCPUsThegameisplayedonbothpriceandproductdesignandqualityandacrossarangeofproducts.