Business
Oligopoly Definition: How an Oligopoly Works
Written by the MasterClass staff
Last updated: Feb 25, 2022 • 3 min read
An oligopoly is a collection of multiple companies in the same industry working together to fix prices to ultimately earn higher profits and discourage lower prices. The market power of an oligopoly is such that it bars entry to new firms, limiting competition, and is generally bad for consumers because it causes higher prices.