Business, Legal & Accounting Glossary
A situation in which two suppliers dominate the market for a commodity or service.
A duopoly is a market condition in which two companies producing a similar type of product have control over the market. This is similar to monopolies in which only one company controls the market and oligopolies in which multiple companies are allowed to trade in the market.
The duopoly theory looks at the interplay of two companies in a market: each firm’s prices and production are set by the decisions of the other.
Webster defines duopoly as, an oligopoly limited to two sellers.
The concept of a duopoly was proposed by French economist Antoine Augustin Cournot (1801-1877).
In economics, duopolies are categorized into two primary models. These are described below:
The most popular example of a duopoly is between Visa and Mastercard who exercise a major control over the electronic payment processing market in the world. Pepsi and Coca-cola are the two major shareholders in the soft drinks market. Airbus and Boeing are duopolies in the commercial jet aircraft market.
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This glossary post was last updated: 6th April, 2020 | 10 Views.