Recent Examples of duopoly from the Web
Not coincidentally, the two companies also form a duopoly that gets 73 percent of all digital advertising in the United States, and virtually all the growth in ad spending, on the Internet.
If Amazon's venture is the case, the duopoly of Sky and BT has finally been broken, and the move (if successful) may well lead to other companies getting involved in future endeavours.
Not only is there separatism in Catalonia but two parties, Podemos and Ciudadanos, have emerged to challenge the old duopoly.
But some of the restrictions are having an unintended consequence: reinforcing the duopoly of Facebook Inc. and Alphabet Inc.’s Google.
The duopoly of Iraqi Kurdistan’s two ruling parties may appear secure.
That’s because the two tech giants have become something of an advertising duopoly.
Google’s readiness underlines one of the unintended consequences of the GDPR: a reinforcement of the duopoly.
In that vision, Kins will be the coin of the realm in all sorts of Internet economies, from video games to ad blocking, and help to dethrone the online duopoly of Facebook and Google.
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.
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.
Learn More about duopoly
Seen and Heard
What made you want to look up duopoly? Please tell us where you read or heard it (including the quote, if possible).