let us discuss below One of the industries that have an oligopoly within it is the telecommunications market. This included all cell providers like AT&T, T-Mobile, and Verizon. There are a few more but most customers are in one of those big providers. This represents a Cournot oligopoly. This means the oligopoly has only a few firms but those firms serve a massive group of people. The massive group of people that these firms are accommodating is almost all of America. In other countries, there are different providers but are a part of their own oligopoly. Each of these companies offers similar products such as different phone plans, internet services, and more. They compete against each other with those different services but do not vary their prices. The prices stay fairly consistent due to the case that undercutting the competition would lead to significant losses for the firms.

The telecommunications industry is characterized by high barriers to entry, which further supports the oligopolistic structure of the market. The cost of building and maintaining a telecommunications network is very high, and the industry is heavily regulated, making it difficult for new companies to enter the market and compete. This lack of competition allows the dominant firms to maintain their market power and charge higher prices. Another way there are barriers to entry is the possibility of using another company's towers to provide service to customers but this would cause the entering company to pay the major companies for their use. This again provides business to the major companies making it hard for entering companies to get a foot in the door.

As a company that is trying to enter the telecommunications industry, what do you think would be the best way to try and do that?

Baye, M. R., & Prince, J. (2017). Chapter 9: Basic Oligopoly Models. InManagerial Economics and Business Strategy(pp. 288). essay, McGraw-Hill Education.

A communications oligopoly on steroids. Equitable Growth. (2018, June 6). Retrieved April 22, 2023, from https://equitablegrowth.org/research-paper/communications-oligopoly-steroids/