"Duopoly is a type of oligopoly where two firms have dominant or exclusive control over a market, and most (if not all) of the competition within that market occurs directly between them."
A market structure in which two firms dominate an industry, often resulting in intense competition and pricing strategies.
Market structure: The characteristics and types of market structures including duopoly, monopoly, oligopoly, and perfect competition.
Cournot Model: A mathematical model that analyzes the behavior and interaction of two companies in a duopoly by considering the quantity of the output each company produces.
Bertrand Model: A mathematical model that analyzes the behavior and interaction of two companies in a duopoly by considering the price of the output each company sets.
Game theory: A tool used to analyze strategic decision-making in situations where the outcome depends on the choices made by other players.
Nash equilibrium: A situation in which each player in a game chooses the best strategy given the strategies chosen by the other players.
Collusion: An illegal agreement between two companies in a duopoly to reduce competition by raising prices or limiting production.
Price leadership: A strategy used by one company in a duopoly to set the price, which is then followed by the other company.
Cartels: A group of companies that agree to act together to reduce competition and increase prices.
Antitrust laws: Laws that promote competition and prevent monopolies, including laws prohibiting anticompetitive practices like price fixing, collusion, and monopolization.
Strategic behavior: The actions a company takes to influence the behavior of its competitor in a duopoly, such as advertising and product differentiation.
Differentiated products: Products that are similar but still different enough to enable companies to charge different prices and differentiate themselves from their competitors.
Entry barriers: Obstacles that prevent new companies from entering a market, such as high startup costs or proprietary technologies.
Industry concentration: The degree to which a market is dominated by a few large companies, measured by market share or the Herfindahl-Hirschman Index (HHI).
Mergers and acquisitions: The consolidation of two or more companies through a merger or acquisition, which can affect competition and market structure.
Perfect Duopoly: A perfect duopoly is a situation where there are exactly two firms producing identical goods or services with no entry barriers, and equal market share.
Imperfect Duopoly: An imperfect duopoly is a situation with two dominant firms in a market that is not perfectly competitive.
Collusive Duopoly: A collusive duopoly is a situation where the two firms collude to maximize profits and restrict output to maintain market power.
Non-Collusive Duopoly: A non-collusive duopoly is a situation where the two firms compete aggressively to maximize profits.
Cournot Duopoly: A Cournot duopoly is a situation where two firms produce identical goods and choose their quantities simultaneously based on their assumptions about the other firm's output level.
Stackelberg Duopoly: A Stackelberg duopoly is a situation where one firm is a leader, and the other is a follower. The leader firm chooses its output level first, and the follower adjusts its output based on the leader's decision.
Sweezy Duopoly: A Sweezy duopoly is a situation where the two firms in a market produce differentiated goods, and the firms engage in strategic price setting behavior.
Bertrand Duopoly: A Bertrand duopoly is a situation where two firms produce identical products and compete on price.
"Duopoly is the most commonly studied form of oligopoly due to its simplicity."
"Duopolies sell to consumers in a competitive market."
"The defining characteristic of duopolies is that decisions made by each seller are dependent on what the other competitor does."
"Duopolies can exist in various forms, such as Cournot, Bertrand, or Stackelberg competition. These models demonstrate how firms in a duopoly can compete on output or price, depending on the assumptions made about firm behavior and market conditions."
"A duopoly (from Greek δύο, duo 'two' and πωλεῖν, polein 'to sell')..."
"Duopoly is a type of oligopoly where two firms have dominant or exclusive control over a market..."
"...the choice of an individual consumer cannot affect the firm in a duopoly market..."
"Duopoly is the most commonly studied form of oligopoly due to its simplicity."
"Duopolies can exist in various forms, such as Cournot, Bertrand, or Stackelberg competition."
"These models demonstrate how firms in a duopoly can compete on output or price, depending on the assumptions made about firm behavior and market conditions."
"These models demonstrate how firms in a duopoly can compete on output or price, depending on the assumptions made about firm behavior and market conditions."
"These models demonstrate how firms in a duopoly can compete on output or price, depending on the assumptions made about firm behavior and market conditions."
"A duopoly is a type of oligopoly where two firms have dominant or exclusive control over a market..."
"...most (if not all) of the competition within that market occurs directly between [the two firms]."
"Decisions made by each seller are dependent on what the other competitor does."
"...decisions made by each seller are dependent on what the other competitor does."
"Most (if not all) of the competition within that market occurs directly between [the duopoly firms]."
"A duopoly (from Greek δύο, duo 'two' and πωλεῖν, polein 'to sell')..."
"Duopoly is the most commonly studied form of oligopoly due to its simplicity."