Firms in oligopoly can set prices to a degree but must consider other firms' decisions.
An oligopoly is characterized by a market with a few firms having a negligible effect on price.
Oligopoly
There are three main characteristics of oligopoly. They are industry dominated by a small number of large firms, the firms sell identical or similar products, and the industry has significant barriers to enter.
An oligopoly is an intermediate market structure between the extremes of perfect competition and monopoly. Oligopoly firms might compete (noncooperative oligopoly) or cooperate (cooperative oligopoly) in the Marketplace.
Prices in a collusive oligopoly are unlike to fall, because if prices fall that only benefits the consumer, so the firms will not do it. Also in a collusive oligopoly firms get together and FIX the prices, which answers the question.
If in an oligopoly market, the firms compete with each other, it is called a non-collusive, or non-cooperative oligopoly. If the firm cooperate with each other in determining price or output or both, it is called collusive oligopoly, or cooperative oligopoly. Collusive oligopoly exists when the firms in an Oligopolistic market charge the same prices for their products, in affect acting as a monopoly but dividing any profits that they make. Non collusive oligopoly exists when the firms in an oligopoly do not collude and so have to be very aware of the reactions of other firms when making price decisions.
Disney is not an oligopoly. An oligopoly is a small number of firms who work together to sell a homogeneous or differentiated product. It is instead an industry that has many outputs of different products.
oligopoly
oligopoly
In an oligopoly, there are typically a few firms that dominate the market, leading to a limited number of competitors. These firms have significant market power and can influence prices and output levels, often resulting in interdependent decision-making. While the exact number of firms can vary, the key characteristic of an oligopoly is that it consists of a small group of companies that collectively hold a large market share.
Monopoly and Oligopoly are two barriers that prevent firms from entering the marketplace.