Understanding Duopolies: A Guide to Oligopolistic Market Structures

A duopolist is a firm that operates in an oligopolistic market structure, where there are only two firms competing with each other. In this type of market, the two firms have some degree of control over the market price and can influence each other's actions.

For example, if one firm raises its prices, the other firm may choose to lower its prices in response, in order to gain market share. This type of interaction between the two firms is known as a "duopoly."

In a duopoly, the two firms are often considered to be interdependent, as their actions can have a significant impact on each other's success. This can lead to complex strategic decision-making, as each firm must consider how its actions will affect the other firm and the overall market.

Duopolies can be found in a variety of industries, including technology, automotive, and retail. For example, there are only two major players in the smartphone market (Apple and Samsung), and only two major players in the US automobile market (General Motors and Ford).