Oligopoly is that kind of market structure where at market is dominated by few sellers selling homogeneous or differentiated products .
What are homogeneous products ?
Homogeneous products are those that cannot be distinguished from the products sold by other sellers .
Homogeneous products are similar in quality but differ on other attributes such as style , price of the product or brand image .
To a buyer , the products appear similar and cannot make out a difference between a product on display except their price or brand image and therefore as a buyer , you make your selection of the almost identical products based on their price or brand image . For example : While buying a bag of strawberries you aren't aware who grew them and you probably don't care but you make your selection of the vendor who sells them at the best quality and the cheapest price as compared to the other vendor .
How does Oligopoly differ from Monopoly and Duopoly ?
A monopoly market is ruled by one firm whereas , a duopoly market is ruled by two firms and an Oligopoly market there is no particular upper limit to the number of firms , however , the number must be low enough where the actions of one firm influence the other . An Oligopoly market structure is one where competition exists among a few sellers and where the behaviour of every seller influences and impacts the other seller and the other seller too is influenced .