Word of the Day
August 24, 2021
Oligopoly
A market structure dominated by a small number of large sellers who have significant control over prices and output, often resulting in reduced competition and higher costs for consumers.
From Greek 'oligos' meaning 'few' and 'polein' meaning 'to sell.' The term emerged in economic literature in the early 20th century to describe markets with limited sellers.
Usage Examples
- The utility sector operates as an oligopoly, with only a few companies providing electricity to each region under government regulation.
- Critics argue that social media platforms have formed an oligopoly that stifles competition and controls public discourse.
- Breaking up oligopolies has historically increased competition and lowered prices for consumers.
From the Show
Bob Boswell introduced the concept of oligopoly during his August 24th analysis of utility company economics, explaining how regulated returns on duplicate renewable and fossil fuel investments drive electricity prices higher.