Definition of oligopoly in economics. What is an oligopoly? Signs, characteristics, examples of oligopoly in the modern market

Competition dominated by only one or a few firms. Today, a good example is the passenger airliner market. It is almost impossible to compete with Airbus and Boeing. A similar situation has developed in the car market.

Basic concepts

Oligopoly is a state of the market where a small number of companies or brands compete for dominance. Undoubtedly, the leaders of the race are large firms, which have both higher authority and a well-developed PR campaign. The goods and services provided by the oligopoly market are similar to those of competitors. A striking example is Cell phones, washing powders, etc.

It is noteworthy that so-called price competition is practically not used in modern markets. Today, firms, on the contrary, are trying to become leaders in sales through alternative types of oligopoly. That is why it is extremely difficult for new participants to enter such a market. To enter the race for leadership, you must follow legal restrictions and have a huge initial capital for business development.

To enter an oligopoly, it is important to comply with a number of conditions. One of them is information content and openness. Any company is afraid of rash actions of competitors that can reduce its profits. Therefore, the subjects of the "alliance" are obliged to inform each other about possible changes and novelties. This consistency strengthens competitors, preventing other firms from taking leading positions. Such a vision of the situation is called strategic. At the same time, any changes in the activities of a competitor cannot be short-term.

At the moment there are 2 groups of oligopolies. The first is called cooperative. Consistency is the main point in it. The second group is non-cooperative. According to this strategy, competitors are fighting for market leadership in all possible ways. In addition, there are many oligopoly models. However, in reality, only a few of them are used.

Features of the cartel model

This is a kind of oligopoly based on collusion. Each market representative has the right to choose individual or cooperative behavior. Both strategies can be winning in the right hands. The advantages of the first kind of behavior are the possibility of concluding secret alliances, raising prices, etc.

Cooperative strategy allows you to collude with the most powerful competitors. As a result, companies jointly set prices, produce the same volumes of products, evenly divide the market, and jointly fight against various sanctions.

In this case, oligopoly is a powerful weapon in the fight against the crisis. Firms are not obliged to help each other, but all aspects related to products and services are strictly negotiated. Such oligopoly models are based on the strategy of a cartel (a group of companies that act in concert). This includes levers for managing prices, volumes, and product quality.

Price war model

In another way, the strategy is called Bertrand competition. This model was formulated by a French economist at the end of the 19th century. Here, oligopoly is competition based on the cost of products and services.

The model describes the price change strategy. The main law of Bertrand's theory is the appointment of the cost of goods, equal to the maximum cost in conditions of marginal competition.

For the model to be effective, the following sentences and conditions are required:

1. The market must consist of at least two large homogeneous companies.
2. Firms may behave inconsistently.
3. Under normal price competition, the demand function must be linear.
4. With the same cost of production, the profit of companies is comparable.
5. With a decrease in prices, the demand for goods and services rises markedly.
6. Regulation of the cost of production is based on the volume of production.

Price leadership model

There is only one company on the market, which sets the maximum barrier for the cost of production. Thus, the leading firm tries to increase its profits to the maximum possible. The remaining representatives of the market are only trying to catch up with the main competitor, while competing with each other. Here, an oligopoly is a series of non-cooperative companies, one of which completely controls the pricing of goods.

The leadership model is an integral part of a monopoly. When one firm controls both prices and profits, the others accept its terms of competition. In such a strategy, only large companies. Information content in this model is missing. market dominance and high level demand - the main conditions of the oligopoly leadership. At the same time, the production costs of large firms are always reduced to a minimum.

The concept of the Cournot model

The strategy is based on a market duopoly. It was proposed back in 1838 by the French philosopher and mathematician Antoine Cournot. This oligopoly model has a number of advantages. Production is strictly regulated, pricing is standardized, the quality of services depends on the technological equipment of the company. This strategy is also called healthy competition.

A duopoly is a market structure where there are only two sellers. They are protected from the emergence of new companies. Both competitors are producers of the same type of product, but do not have common denominators. A duopoly clearly shows how one seller outperforms another in the struggle for leadership under equal market conditions.

The Cournot model assumes that competitors do not have complete information about each other's plans and actions.

Market Power Theory

This strategy is aimed at regulating and setting prices for products. The sources of market power are the availability of substitute goods, the elasticity of cross-demand, temporary fluctuations in growth rates, legal barriers, monopoly on certain resources, technological equipment of competitors.

The main indicators of the strategy are the percentage of sales to output, the sum of the squares of sales shares, the difference between prices and costs.

Such an oligopoly market is always controlled by legislation to prevent the emergence of monopoly power.

The market is characterized by oligopolistic relations. An oligopoly in the economy is a kind of middle link that allows, on the one hand, to control and manage all the largest enterprises, and on the other hand, to create conditions for entering a competitive environment in the future. In any case, the topic is very relevant for Russia, because it is in our country that there are plenty of examples to study.

What is an oligopoly

Let us consider in more detail how this type differs from others. An oligopoly in a market economy is a meeting place for a small number of producers and many buyers. As a rule, the number of firms does not exceed 10-12 units. The most interesting thing is that an oligopolistic market can have both monopolistic and competitive features, depending on the behavior of its main participants.

You need to understand that when there are only a few large players on the market, they have only two behaviors: in the first, they cooperate and solve pricing issues together, and in the other, they compete and consider each other the worst enemies. In the first case, we are talking about "secret agreements", when the leaders over a cup of coffee or in a steam room simply agree on what kind of game to play. in the second model of behavior do not always benefit manufacturers, but reducing the cost of products or improving their quality attracts new potential customers.

Characteristic features of an oligopoly

Oligopolies in the modern economy have their own specific features. There are only a few of them:

1. There are only a few leading firms on the market. Usually they occupy approximately the same share in such a way that their power cannot be called a pure monopoly.

2. If we consider the graph, then the demand curve for each individual firm will have a falling character, from which we can conclude that the market is not competitive.

3. The main distinguishing feature is that any action on the part of one of the manufacturers will not go unnoticed by competitors. If even the most important participant raises the price, its competitors will be forced to take similar actions or provoke demand for their products. At the same time, in contrast to competitive market It is difficult to predict the behavior of buyers. An oligopoly in the economy is always an impetus to improve quality or reduce prices.

4. Often standardized products are produced in an oligopolistic market. Thus, manufacturers can only play price wars, since they cannot change the quality or type of products. At the same time, another subtype - a differentiated oligopoly (for example, the automotive industry) - allows for large-scale races between manufacturing firms for consumer attention.

5. Any oligopoly can be characterized by the concentration of production. The higher the value of this indicator, the less competition in the market. The degree of concentration can be calculated using the Herfindahl-Hirschman index.

Features of entering the market

It is very difficult for young firms to enter a market in which there are only a few large manufacturers. And this is not surprising. Oligopolies in the Russian economy have firmly strengthened their status, and their names appear on an international scale. As a rule, all industries that can be called oligopolistic are those where there are limited resources, complex technologies, and large equipment.

It is clear that it will be very difficult for a young company not only to start operations, because this requires huge investments, but also to continue to work at a competitive level. When the name "Lukoil" is on everyone's lips, it will be difficult to surpass it. In world practice, there are only two examples of successful entry into the oligopolistic market of a new company. These are Volkswagen in the USA and AvtoVAZ in Russia. And then, it was possible only with the condition of state support, so we are not talking about normal competition here.

Oil production market in Russia

The role of oligopolies in the modern Russian economy can be clearly seen in the example of the oil production market. This is one of the most striking examples of how a few major players can pursue a policy of "secret agreements".

To begin with, consider which firms appear in this market and which segment they occupy. For this we need the following figure.

As can be seen from this figure, only 11 Russian companies produce almost 90% of oil. Of these, four own a 60% stake. They become the biggest players, dictating their terms. The distribution of production capacities in Russia is shown in the following figure.

What is really happening in the oil market

Oligopolies in the Russian economy, and in particular in the oil industry, behave like monopolists. In particular, there are vertically integrated systems that fully control the entire process from oil production, refining and to sale to end consumers both on the external and domestic markets.

As noted by the Antimonopoly Committee, the activity of the main players in this market is by no means transparent. Theoretically, the price of petroleum products should be formed under the influence of many external and internal factors, but in reality it is significantly overstated, and, as calculations show, gasoline could cost 20% cheaper without harming producers. There is a conspiracy in which the main participants agree on a price and sell it on the domestic market.

Mobile operator market in Russia

If we consider the role of oligopolies in the modern Russian economy, then another good example shows the market of mobile operators. Competition here has long ceased to be exclusively price. For the right to attract the attention of the buyer, real wars are fought, sometimes even

Consider what is the state of affairs and which players are in the lead.

As can be seen from the figure, the Big Three, which includes MTS, VimpelCom (Beeline) and MegaFon, hold the majority of the market. Recently, Tele 2 has been increasing its turnover, although access to the most profitable sites in Moscow and St. Petersburg is still closed for it. As statistics show, over the past year, there has been an outflow of customers from all operators by several percent. At MTS the number of clients decreased by 0.1%, at MegaFon - by 0.3, and at Beeline - by as much as 2.6%.

How does oligopoly manifest itself in the market of cellular operators

The "Big Three" controls almost the entire market of cellular operators. New technologies such as 3G and 4G Internet are in their power. In principle, the place of the oligopoly in the modern Russian economy can be seen from the way the operators behave. In 2006, the "big three" were involved in a major scandal and were accused of conspiring against regional operators. It was during that period that a merger of some small companies or their complete disappearance was observed.

In 2010, the Antimonopoly Service fined the largest market leaders for deliberately inflating tariffs for the provision of roaming services. Each company was fined, which amounted to 1% of their revenue received for their actions. The total income of the FAS amounted to 8.1 million rubles. One has only to calculate how many billions of rubles the companies themselves received.

"Big Three" and "Tele 2"

In 2006, the Swedish operator Tele 2 abruptly appears on the scene. It was formed back in 2001, but the persistent ones prevented it from settling in the central regions. Thanks to cunning manipulations with the shares of regional operators, in just one year, Tele 2 managed to secure competitive advantages in 13 areas. Next, the company pursued a very aggressive pricing policy, which allowed it to win back 4.3% of the market. It was a breakthrough that the main players in cellular communications could not fail to notice.

The "Big Three" began to interfere with "Tele 2" in every possible way, and completely non-competitive methods were used. So, a request was made to the Ministry of Internal Affairs from one deputy, after which all Tele 2 stations and offices began to be carefully checked to see if they were functioning correctly.

But the Swedish company did not retreat and set itself the main goal of conquering the Krasnodar Territory. The "big three" could not allow this, and they had to cut prices by one and a half times in order to adequately resist the competitor. This example clearly shows the role of oligopolies in the modern economy. We are not talking about fair competition at all, and if new company wants to survive and gain a foothold here, you need to have very strong support either from the state or from more influential companies.

Oligopoly and its place in a market economy

All economists agree on a single point of view: oligopolies are needed modern world and market economy. And although such a market is sometimes difficult to control, sometimes there are real wars against competitors, there are still positive aspects for the formation of a healthy economic system. Namely:

1. First of all, large firms have significant finances that can be directed to the development of the industry, scientific and technical developments.

2. It follows from the first point that since there is money and it is possible to invest in development, the product will become more profitable for the buyer, and thus, it is possible to bypass competitors. Oligopoly in the economy is the most powerful engine of progress.

3. In a field where only giants exist, there is no such destructive force of competition as in a free market. Here are observed low prices and high quality products.

4. Another advantage is barriers to entry. Only well-funded firms can compete with leaders.

Disadvantages of oligopolies

Almost all the advantages are the negative aspects that arise in the realities of the modern economy.

Let's start with the fact that leading firms are completely unafraid of competitors and behave willfully, doing whatever they please. They confirm the legality of their actions by secret agreements so that others act in a similar way. By colluding, they play buyers, forcing them to buy low-quality products at a higher price. And people have no choice, because the oligopoly in the modern economy is akin to a monopoly: either buy or stay (for example) without gasoline.

Although oligopolies can influence scientific and technological progress, and only they can do this, large firms are in no hurry to introduce new technologies and invest in development. Everything is explained by the fact that, again, the company is in no hurry, because it knows: they will buy anyway. Until all the previously invested money is paid off, nothing new will develop.

Consequences of market oligopolization

The negative attitude towards monopoly and oligopoly in the economy is clearly unjustified. Perhaps this is due to the fact that in our country there is too much distrust and too many of those who want to profit from the money of ordinary people. But in fact, the big ones in one industry are needed by the economy.

First of all, it is connected with the scale of activity. This is reflected on fixed costs. For small firms, almost all costs are variable. But in large industries, due to scale, you can save on the introduction of some new technologies. For example, the development of a new drug will cost $600 million, but these costs will be carried over for years until the problem is solved, and the costs can be added to the cost of already manufactured products, and the price will not change much.

Conclusion

Oligopoly in the economy is a very powerful tool for the development of scientific and technological progress. If you correctly direct the direction along which you need to move, then all the shortcomings and negative aspects observed in the current situation in our country will be hidden.

oligopoly(from other Greek ?????? - small and ????? - trade) is called a special type market structure characterized by imperfect competition. In an oligopoly, there are very few firms in an industry. In modern economies, examples of oligopolies include airliner manufacturers such as Airbus and Boeing, computer and technology manufacturers Apple and Microsoft, and some car manufacturers such as BMW and Mercedes. There is a special term for an oligopoly with just two members: a duopoly.

In an oligopoly, there are a small number of sellers in the market who are susceptible to marketing strategies and pricing principles. The small number of sellers is the result of the difficulty of entering the market for new entrants. Sellers carefully monitor the actions and strategies of competitors. For example, if one of the aluminum producers lowers prices by a few percent, buyers will prefer it to other suppliers. Other aluminum producers will need to respond to price cuts in a similar way or by expanding their range of services.

The term oligopoly comes from the Greek words oligos (several) and poleo (sell).

Fundamental due to the small number of firms on the market are their special relationship, manifested in close interdependence and sharp rivalry between. In contrast to or pure monopoly, in an oligopoly, the activity of any of the firms causes a mandatory response from competitors. This interdependence of the actions and behavior of a few firms is key characteristic of an oligopoly and applies to all areas of competition: price, sales volume, market share, investment and innovative activity, sales promotion strategy, after-sales services, etc.

We have already mentioned coefficient of volume, or quantitative, cross elasticity of demand, which serves to quantify the interdependence of firms in the market. This coefficient shows the degree of quantitative change in the price of firm X with a change in the firm's output Y on the 1% .

If the volume cross elasticity of demand is equal to or close to zero (as is the case under perfect competition and pure monopoly), then an individual producer can ignore the reaction of competitors to his actions. Conversely, the higher the elasticity coefficient, the closer the interdependence between firms in the market. Under oligopoly Eq>0, however, its exact value depends on the specifics of the industry in question and specific market conditions.

Homogeneity or differentiation of the product

The type of product produced by an oligopoly can be either homogeneous or diversified.

• If consumers do not have a particular preference for any brand, if all products of the industry are perfect substitutes, then the industry is called a pure or homogeneous oligopoly. The most typical examples of practically homogeneous products are cement, steel, aluminium, copper, lead, newsprint, and viscose.
• If the goods are branded and are not perfect substitutes (and the difference between the goods may be as real (according to technical specifications, design, workmanship, services provided), and imaginary (brand name, packaging, advertising), then the products are considered differentiated, and the industry is called a differentiated oligopoly. Examples are the markets for cars, computers, televisions, cigarettes, toothpaste, soft drinks, beer.

Degree of influence on market prices

The extent of the firm's influence on market prices, or its monopoly power, is high, although not to the same extent as in a pure monopoly.

Bargaining power is determined the relative excess of the firm's market price marginal cost (under perfect competition P=MS), or

L=(P-MC)/P.

The quantitative value of this coefficient (Lerner coefficient) for the oligopolistic market is greater than for perfect and monopolistic competition, but less than under pure monopoly, i.e. fluctuates within 0

barriers

Market entry for new firms is difficult but possible.

When considering this characteristic, it is necessary to distinguish between the already established, slow growing markets and young, dynamically developing markets.

• For slow growing oligopolistic markets characteristic very high barriers. As a rule, these are industries with complex technology, large equipment, high minimum efficient production, and significant sales promotion costs. These industries are characterized by positive , due to which the minimum (min ATC) is achieved only with a very large output. In addition, entering a market dominated by well-known brands inevitably leads to high initial investment. Only large competitive firms with the necessary financial and organizational resources can afford to enter such markets.
• For young emerging oligopolistic markets it is possible for new firms to enter because demand expands quickly enough that an increase in supply does not have a downward effect on prices.

Introduction………………………………………………………………………………………….3

1. The concept and signs of oligopoly………………………………………………………………..4

2. Types of oligopoly……………………………………………………………………………………6

3. Models of oligopoly……………………………………………………………………………………………7

Conclusion……………………………………………………………………………………...10

Introduction

Currently, one of the most common market structures are monopolies and oligopolies. However, monopolies remained in their pure form only in a few sectors of the economy. The most predominant form of modern market structure is oligopoly.

The term "oligopoly" is used in economics to describe a market in which there are several firms, each of which controls a significant share of the market.

In an oligopolistic market, several of the largest firms compete with each other and entry into this market of new firms is difficult. Products manufactured by firms can be both homogeneous and differentiated. Homogeneity prevails in the markets for raw materials and semi-finished products; differentiation - in consumer goods markets.

The existence of an oligopoly is associated with entry restrictions on this market. One of them is the need for significant capital investments to create an enterprise in connection with the large-scale production of oligopolistic firms.

The small number of firms in the oligopolistic market forces these firms to use not only price, but also non-price competition, because the latter is more efficient under such conditions. Manufacturers know that if they lower the price, their competitors will do the same, which will lead to a drop in revenue. Therefore, instead of price competition, which is more effective in today's competitive environment, "oligopolists" use non-price methods of struggle: technical superiority, product quality and reliability, marketing methods, the nature of the services and guarantees provided, differentiation of payment terms, advertising, economic espionage.

For the disclosure of this topic, it is necessary to solve a number of problems:

1. Define the concept and signs of an oligopoly.

2. Consider the main types and models of oligopoly.

The concept and signs of oligopoly

Oligopoly is a type of imperfectly competitive market structure dominated by a very small number of firms. The word "oligopoly" was introduced by the English humanist and statesman Thomas More (1478-1535) in the world-famous novel "Utopia" (1516).

At the heart of the historical trend of the formation of oligopolies lies the mechanism market competition, which with inevitable force forces out weak enterprises from the market either by their bankruptcy or by absorption and merger with stronger competitors. Bankruptcy can be caused both by weak entrepreneurial activity of the enterprise's management, and by the impact of the efforts made by competitors against a particular enterprise. Absorption is carried out on the basis of financial transactions aimed at the acquisition of an enterprise, either in full or in part by buying a controlling stake or a significant share of the capital. This is the relationship between strong and weak competitors.

In the oligopolistic market, several large firms (2 - 10) compete with each other, and entry into this market of new firms is difficult. The products produced by firms can be both homogeneous and differentiated. Homogeneity prevails in the markets of raw materials and semi-finished products: ores, oil, steel, cement; differentiation - in consumer goods markets.

The existence of an oligopoly is associated with restrictions on entry into this market. One of them is the need for significant capital investments to create an enterprise in connection with the large-scale production of oligopolistic firms.

Examples of oligopolies include manufacturers of passenger aircraft, such as Boeing or Airbus, car manufacturers, such as Mercedes, BMW.

The small number of firms in the oligopolistic market forces these firms to use not only price, but also non-price competition, since the latter is more efficient under such conditions. Manufacturers know that if they lower the price, their competitors will do the same, which will lead to a drop in revenue. Therefore, instead of price competition, which is more effective in today's competitive environment, "oligopolists" use non-price methods of struggle: technical superiority, product quality and reliability, marketing methods, the nature of the services and guarantees provided, differentiation of payment terms, advertising, economic espionage.

From the foregoing, the main features of an oligopoly can be distinguished:

1. A small number of firms and a large number of buyers. This means that the market supply is in the hands of a few large firms that sell the product to many small buyers.

2. Differentiated or standardized products. In theory, it is more convenient to consider a homogeneous oligopoly, but if the industry produces differentiated products and there are many substitutes, then this set of substitutes can be analyzed as a homogeneous aggregated product.

3. The presence of significant barriers to entry into the market, i.e. high barriers to entry into the market.

4. Firms in the industry are aware of their interdependence, so price controls are limited.

Types of oligopoly

There are two types of oligopoly:

1. Homogeneous (non-differentiated) - when several companies producing homogeneous (non-differentiated) products operate on the market.
Homogeneous products - products that do not differ in the variety of types, types, sizes, brands (alcohol - 3 grades, sugar - about 8 types, aluminum - about 9 grades).

2. Heterogeneous (differentiated) - several companies create non-homogeneous (differentiated) products. Heterogeneous products - products that are characterized by a wide variety of types, types, sizes, brands.

3. Oligopoly of dominance - a large company operates on the market, the share of which in the total volume of production is 60% or more, and therefore it dominates the market. Several small companies operate next to it, which divide the remaining market among themselves.

4. Duopoly - when only 2 manufacturers or traders of this product work on the market.

Characteristic features of the functioning of oligopolies:

1. Both differentiated and non-differentiated products are produced.

2. Decisions of oligopolists regarding production volumes and prices are interdependent, i.e. oligopolies imitate each other in everything. So if one oligopolist lowers prices, then others will definitely follow suit. But if one oligopolist raises prices, then others may not follow his example, because. risk losing their market share.

3. In an oligopoly, there are very tough barriers to other competitors entering this industry, but these barriers can be overcome.

Oligopoly Models

There is no general model for the behavior of an oligopolist when choosing the optimal volume of production that maximizes profit. Since the choice depends on the behavior of the firm in response to changes in the actions of competitors, various situations may arise. In this regard, the following main models of oligopoly are distinguished:

1. Cournot model.

2. Oligopoly based on collusion.

3. Silent collusion: leadership in prices.

Cournot model (duopolies).

This model was introduced in 1838 by the French economist A. Cournot. A duopoly is a situation where only two firms compete with each other in the market. This model assumes that firms produce homogeneous goods and that the market demand curve is known. Firm 1's profit-maximizing output (£^1) changes depending on how it thinks firm 2's output (€?2) will grow. As a result, each firm builds its own response curve (Fig. 1).

Rice. 1 Cournot equilibrium

Each firm's response curve tells how much it will produce given its competitor's expected output. In equilibrium, each firm sets its output according to its own reaction curve. Therefore, the equilibrium level of output is at the intersection of the two response curves. This equilibrium is called the Cournot equilibrium. Under it, each duopolist sets the output that maximizes his profit, given the output of his competitor. Cournot equilibrium is an example of what in game theory is called Nash equilibrium (when each player does the best he can, given the actions of opponents, in the end - no player has an incentive to change his behavior) (game theory was described by John Neumann and Oskar Morgenstern in "Game Theory and economic behavior" in 1944).

Collusion.

A conspiracy is an actual agreement between firms in an industry to fix prices and production volumes. Such an agreement is called a cartel. The international cartel OPEC, which unites oil exporting countries, is widely known. In many countries collusion is considered illegal, and in Japan, for example, it has become widespread. Conspiracy factors include:

· Availability legal framework;

· high concentration of sellers;

Approximately the same average costs for firms in the industry;

Impossibility of entry of new firms into the market.

It is assumed that under collusion, each firm will equalize its prices both when prices go down and when prices go up. In this case, firms produce homogeneous products and have the same average cost. Then, when choosing the optimal volume of production that maximizes profit, the oligopolist behaves like a pure monopolist. If two firms agree, then they build a contract curve (Fig. 2):

Rice. 2 Collusion contract curve

It shows the different combinations of outputs of the two firms that maximize profits.

Conspiracy is much more profitable for firms than not only perfect balance, but also the Cournot equilibrium, since they will produce less output and set the price higher.

Silent conversation.

There is another model of oligopolistic behavior based on a tacit secret agreement: this is "price leadership", when the dominant firm in the market changes the price, and all others follow this change. The price leader, with the tacit consent of the rest, is assigned the leading role in setting industry prices. The price leader can announce a price change, and if his calculation is correct, then the rest of the firms also increase prices. As a result, the industry price changes without collusion. For example, General Motors in the United States sets a certain price for its new model, while Ford and Chrysler charge roughly the same price for their new cars in the same class. If other firms do not support the leader, then he refuses to increase the price, and with the frequent repetition of such a situation, the market leader changes.

Conclusion

Assessing the importance of oligopolistic structures, it is important to note the following:

1. The inevitability of their formation as an objective process that follows from open competition and the desire of enterprises to achieve the optimal scale of production.

2. Despite both the positive and negative assessment of oligopolies in modern economic life, one should recognize the objective inevitability of their existence.

A positive assessment of oligopolistic structures is associated, first of all, with the achievements of scientific and technological progress. Indeed, in recent decades, in many industries with oligopolistic structures, significant success has been achieved in the development of science and technology (space, aviation, electronics, chemical, oil industries). The oligopoly has huge financial resources, as well as significant influence in the political and economic circles of society, which allows them, with varying degrees of accessibility, to participate in the implementation of profitable projects and programs, often financed from public funds. Small competitive enterprises, as a rule, do not have sufficient funds to implement existing developments.

The negative assessment of oligopolies is determined by the following points. This is, first of all, that an oligopoly is very close in its structure to a monopoly, and, therefore, one can expect the same negative consequences as with the market power of a monopolist. Oligopolies, by concluding secret agreements, get out of state control and create the appearance of competition, while in fact they seek to benefit at the expense of buyers. Ultimately, this leads to a decrease in the efficiency of the use of available resources and a deterioration in meeting the needs of society.

Despite significant financial resources concentrated in oligopolistic structures, most of the new products and technologies are developed by independent inventors, as well as small and medium enterprises engaged in research activities. However, only large enterprises that are part of oligopolistic structures often have the technological capabilities for the practical implementation of the achievements of science and technology. In this regard, oligopolies use the opportunity to achieve success in technology, production and the market based on the developments of small and medium-sized businesses that do not have sufficient capital for their technological implementation.

Based on this, we can conclude that the oligopoly, although it does not satisfy the abstract conditions for the efficient use and distribution of resources, in reality it is effective, as it makes an important contribution to economic growth, actively participating in the research and development of new products and technologies, and also introducing these inventions into production.