... to come into a specific market. Even so, the size of the barriers will show a discrepancy from industry to industry. In addition, because of the 'interdependence of the firms', each firm cannot act on its own because it will have an effect on the other firms either negatively or positively. For that reason the 'interdependence of the firms' is a key feature for an oligopoly to subsist, which involves collaboration. In oligopoly, there are two courses of action; oligopolists would like to collude with each other, in order to maximize their profits, or they struggle with their opponents to put on a superior share of industry profits for themselves. Even though these are two unable to get along commands, in both cases industry profits will descend. Consequently, there is collusive oligopoly and non-collusive oligopoly. When oligopoly is existent and firms collude, they almost certainly have the same opinion on ...

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