Like monopoly, duopoly is also a type of market which depends on the control of the companies. lets see how they are apart or same from each other.
When two companies in the market own all or maximum part for a given product or service is a situation called ‘Duopoly’. It is the most basic form of oligopoly--another form of market which is dominated by a group of small number of companies.
A duopoly also have the same effect on the market as a monopoly, in the scenario in which the two of the players in the market collude on prices or output. Collusion insists consumers for paying higher prices than they would pay in an actual competitive market and is illegal in many country’s antitrust law.
In a duopoly, the two competing businesses I the market, control a major part of the market sector for a particular product or service they provide. A business can be part of a duopoly even if it provides other services that do not fall into the market sector in question. Let us take an example of Amazon, which stands as a part of the duopoly in the e-book market but is not associated with a duopoly in its other product sectors, like clothing and apparel.
Examples of Duopolies in the market
In tech market, Amazon and Apple can be said a duopoly for their dominance in the e-book marketplace. Similarly, Aviation businesses, Boeing and Airbus have been called a duopoly for their command of the large passenger airplane market. Apart from the other companies competing in the business of producing passenger planes and e-books, the major market share is highly concentrated between the two businesses identified in the duopoly.
I hope this gives you an idea about duopoly!!!
Thanks for reading!!