Definition of Duopoly:
A duopoly is a situation where two companies together own all, or nearly all, of the market for a given product or service. A duopoly is the most basic form of oligopoly, a market dominated by a small number of companies. A duopoly can have the same impact on the market as a monopoly if the two players collude on prices or output. Collusion results in consumers paying higher prices than they would in a truly competitive market, and it is illegal under U.S. antitrust law.
A situation in which two suppliers dominate the market for a commodity or service.
Market situation in which only sellers supply a particular commodity to many buyers. Either seller can exert some control over the output and prices, but must consider the reaction of its sole competitor (unless both have formed an illegal collusive duopoly).
In a duopoly, two competing businesses control the majority of the market sector for a particular product or service they provide. A business can be part of a duopoly even if it provides other services that do not fall into the market sector in question. For example, Amazon is a part of the duopoly in the e-book market but is not associated with a duopoly in its other product sectors, such as computer hardware.
How to use Duopoly in a sentence?
- Now, most markets are cozy duopolies, at best, where consumers can get broadband only from a phone or cable company.
- Visa and Mastercard are examples of a duopoly that dominates the payments industry in Europe and the United States.
- A duopoly is a form of oligopoly, where only two companies dominate the market.
- The companies in a duopoly tend to compete against one another, reducing the chance of monopolistic market power.
Meaning of Duopoly & Duopoly Definition