Recent Examples of duopoly from the Web
Boeing's potential Embraer deal raises the prospect of a duopoly with Airbus that would extend into the market for smaller planes, where manufacturers in Canada, Russia, Japan and China are emerging as competitive threats.
This extraordinary duopoly is responsible in large part for the declining fortunes of journalism and other content creators, and such businesses are finally starting to fight back.
Second, the migration of attention from print and television to the internet—both desktop and mobile—has created a advertising duopoly for Google and Facebook.
Whether the Barzani dynasty, or the KDP-PUK duopoly, will survive this disastrous setback to the Kurdish drive for statehood is next up.
Instead of breaking their duopoly, Bombardier was consumed by it.
That same year, a small club in Saxony called SSV Markranstädt underwent a transformation that was born out of a desire to challenge Germany's duopoly.
With Cristiano Ronaldo and Lionel Messi holding a duopoly over the award for a decade, the 29-year-old - like many - have hardly had a look-in.
It's even led some wonks to ask whether the United States could benefit from proportional voting and a parliamentary system that breaks the two-party duopoly and better tethers the executive to the legislature.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'duopoly.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of duopoly
First Known Use: 1920See Words from the same year
Financial Definition of DUOPOLY
What It Is
How It Works
There are two kinds of duopolies. In the first, the Cournot duopoly, competition between the two companies is based on the quantity of products supplied. The duopoly members essentially agree to split the market. The price each company receives for the product is based on the quantity of items produced, and the two companies react to each other's production changes until an equilibrium is achieved.
In a Bertrand duopoly, the two companies compete on price. Because consumers will purchase the cheaper of two identical products, this leads to a zero-profit price as the two competitors attempt to attract more customers (and thus more profit) through price cuts. The threat of price undercutting means that Bertrand equilibrium prices and profits are generally lower (and quantities higher) than in Cournot duopolies.
Why It Matters
A duopoly forces each producer to carefully consider its rival's potential reactions to certain business decisions. When members of a duopoly compete on price, they tend to drive the product's price down to the cost of production, thereby lowering profits for both members of the duopoly.
These circumstances give duopolists a strong incentive to agree to charge a monopoly price and share the resulting profits. However, federal antitrust laws, most notably the Sherman Act, make collusive activity illegal in the United States. Additionally, each member of a duopoly still has an incentive to compete, even while colluding with the competition. An undetected price adjustment will attract customers who are buying from the competition and customers who are not buying the product at all. Price adjustments may be subtle, including better credit terms, faster delivery, or related free services.
Duopolies are most effective when the demand for the duopoly's product is not greatly affected by price. This is also why duopolies are more effective in the short term; over the long term, prices often become more elastic as consumers find substitutes for the product. Also, demand volatility may lead to disagreements within a collusive duopoly regarding outputs and prices.
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Seen and Heard
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