Duopoly

What is a 'Duopoly'

A duopoly is a situation in which two companies own all or nearly all of the market for a given product or service. A duopoly is the most basic form of oligopoly, a market dominated by a small number of companies. A duopoly can have the same impact on the market as a monopoly if the two players collude on prices or output. Collusion results in consumers paying higher prices than they would in a truly competitive market and is illegal under U.S. antitrust law.

BREAKING DOWN 'Duopoly'

Boeing and Airbus have been called a duopoly for their command of the large passenger airplane market. Similarly, Amazon and Apple have been called a duopoly for their dominance in the e-book marketplace.


A closely related concept is a monopoly, a situation in which a single company dominates the market. The United States Postal Service, which is by law the sole provider of first-class mail services, is an example of a monopoly.

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RELATED FAQS
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    The major differences between a monopoly and an oligopoly include the number of firms in the market, type of barriers to ... Read Answer >>
  2. What is a monopoly?

    Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when ... Read Answer >>
  3. Are there any legal monopolies in America or Europe?

    Legal monopolies continue to exist in the United States and Europe despite the current trend against their recognition and ... Read Answer >>
  4. What does it mean when a utility company has a natural monopoly on a market?

    Learn what it means when a utility company has a natural monopoly on a market and why natural monopolies are heavily regulated ... Read Answer >>
  5. What are some current examples of oligopolies?

    Learn what oligopolies are and examples of markets where they are prevalent. Read Answer >>
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