PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

A market which has many competitors, but there is sufficient product differentiation to avoid easy substitition of one product for another. On a scale with monopoly on one end and perfect competition on the other, monoploistic competition is a mid-point which has characteristics of both monopoly and competition, but is closer to competition. With monoplistic competition the pricing decisions of one player do not directly impact on the other players as they do in an oligopoly. An oligopolistic market is closer to a monopoly with relatively few large players whose activities directly impact the other players.

Edit Glossary Term