Basic principles of oligopolies

Oligopoly watch

• All industries tend toward oligopoly.
• Being #1 is great, being #2 is good, being #3 is difficult, being #4 or higher is a losing game..
• Oligopolies are safer from regulation than monopolies.
• Oligopolies are tempted to go vertical.
• Oligopolies are tempted to go horizontal.
• Oligopolies are tempted to go multinational.
• Members of oligopolies tend to converge.
• Oligopolies offer pseudo-variety.
• Members of oligoplies are friendly enemies.
• Oligopolies watch their flanks, fearing disruption.
• A key source of disruption is a shift in the competition matrix.
• Oligopolies buy up innovators or steal their ideas and put them out of business.
• Oligopolies lead to oligopsonies.
• Oligopolies collect and discard brands like a gin rummy player.
• Oligopolies try to master three basic forces: shelf life, shelf space, and mind space.
• Oligopolies tend toward oligonomy.