Oligopoly Definition
An oligopoly is a market form in which a market is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for "few sellers". Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. Oligopolistic markets are characterised by interactivity. The decisions of one firm influence, and are influenced by, the decisions of other firms. Strategic planning by ologopolists always involves taking into account the likely responses of the other market participants.