In week six, we learn about what an oligopoly is. In your own words, please explain what an oligopoly is. Additionally, please provide an example of when a oligopoly may occur. Hint: there is a great example to help you in your textbook; however, you cannot use the example from the textbook in your response to this discussion board. Please think of your own example. Your initial discussion board post is due by Wednesday, Feb. 19th at 11:59 PM EST. This post must be at least 250 words minimum. You must also respond to at least two of your classmates' posts by Friday, Feb. 21st at \( 11: 59 \) PM EST. Each response must be at least 50 words in length.

An oligopoly is a market structure in which a small number of firms dominate the industry. Because there are only a few key players, each firm has significant market power and the ability to influence prices, outputs, and other market conditions. However, unlike a monopoly where one firm rules the entire market, oligopolistic firms must constantly consider their competitors’ actions when making strategic decisions. This interdependence means that a move by one company—such as a change in price, quality of product, or an innovation—can trigger a reactive response from the others. As a result, competition in an oligopoly may be less about dramatically undercutting prices and more about strategies such as marketing, product differentiation, and technological advancements. One of the hallmark characteristics of oligopolies is the presence of barriers to entry. These barriers might be high startup costs, strict government regulations, or strong brand loyalty developed over the years by the incumbent firms. Such hurdles discourage new firms from entering the market, thereby preserving the dominant positions of the established players. A good example of an oligopoly, not commonly cited in textbooks, can be seen in the smartphone operating system market. While the market is often described as a duopoly because it is dominated by just two platforms—Google’s Android and Apple’s iOS—it still falls under the broader definition of an oligopoly. These two operating systems control nearly all of the market share, and their strategic decisions significantly affect one another. When Apple releases a new privacy feature or updates its user interface, Android devices often follow suit, either by introducing a similar change or by offering new features to attract users who might be swayed by the latest innovation. This close rivalry, with each firm's performance influencing the other, perfectly illustrates the interdependent decision-making and competitive strategies characteristic of an oligopolistic market.