Recent Examples of duopoly from the Web
Even Facebook and Google, the successful digital advertising duopoly, now look like sinister privacy invaders due to their data-collecting sales operations.
More broadly, Cuban’s comments reflect a widespread belief that under exactly the right circumstances, an independent presidential candidate with money and charisma can shatter the partisan duopoly and seize the White House.
But don’t worry — digital advertising is still a duopoly.
Another idea is to keep the duopoly in place, but to turn Fannie and Freddie into utilities, privately capitalised but with regulators capping returns.
Reinhardt said the new Chrome feature likely will accelerate new trends in the digital ad space, including fueling Google and Facebook's ad duopoly.
Reinhardt said the new Chrome feature probably will accelerate new trends in the digital ad space, including fueling Google and Facebook's ad duopoly.
Some see the weak share price of Snap, Snapchat’s parent company, as proof that challenging Google’s and Facebook’s online-ad duopoly has become nearly impossible.
An Amazon-Target combination would set up a U.S. retail duopoly.
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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