3 ms·
I'm just wondering, at how many companies does a oligopoly become a healthy, competitive environment?
by adtac 8y ago
I'm just wondering, at how many companies does a oligopoly become a healthy, competitive environment?
- TeMPOraL 8y agoIt's context-dependent. Sometimes 10, sometimes 50. But definitely not 3.
- lmm 8y agoI once saw an economics paper that used a simple model and showed that when the top 4 companies in a given industry controlled more than 60% of the market they would naturally behave like a cartel even if they weren't coordinating. So that's probably the tipping point.
- maxwell 8y agoInteresting, I'd love to see the source if you can find it.