What is Duopol?

When only two manufacturers contain the one -time market, it is said that it is Duopol, as well as a monopoly is a market containing only one producer. Economists often use this term to refer to any market, which is largely dominated by two manufacturers, although there are many other smaller manufacturers. For example, two large food chains can be called Duopol, although several small family markets are in operation in the same region. Large chains practically dominate the market if the sale of smaller shops compared to sales. According to the Cournot, Duopoly lower prices, although they are not as much as markets with perfect competition, which is a state marked by market circumstances in which no one dominates the participant. The Bertrand model of competition on the other hand predicts that Duopoly will eventually reduce prices as well as the perfect competition. Like most of the theoretical models of economic forces, Both models Cournot and Bertrand may be convincing, but neither of them is considered to be definitive.

Many governments feel that it is important to prevent duopols, as many have laws prohibiting monopolies. In Duopol, both manufacturers can be considered easier and more advantageous to concentrate - to cooperate against the customer, rather than competing for customer business - resulting in prices. In the United States, there were prominent court cases aimed at violating Duopols. Experts say that when Duopoly Collude can be strong enough to prevent their competitors from gaining any market share.

This term can also be used in a political context. For example, the American political system of the 20th century was dominated by two parties, Republicans and Democrats. Although third parties sometimes enjoyed success at local levels, the onise had a great impact on the national scale and faced the resistance of the dominance of the established bilateral system. This type of political system can also be referred to as Duopol.

The opposite of Duopol is Duopon, in which there are only two consumers with several producers on one market. An example of such a system is the city with only two dentists. In such an environment, these two dentists would be the only consumers of professional dental products and the only two employers for individuals trained for dental shops. As in Duopol, two manufacturers can deepen to maintain prices high, in Duophy two consumers can maintain low cooperation prices.