Duopoly
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A true duopoly is a form of oligopoly where only two producers exist in a market. In reality, this definition is generally eased whereby two firms must only have dominant control over a market. In the field of industrial organization, it is the most commonly studied form of oligopoly due to its simplicity.
Duopoly Models in Economics
There are two principal duopoly models, Cournot duopoly and Bertrand duopoly:
- The Cournot model, which shows that two firms react to one another's production (quantity) changes until they reach a Nash equilibrium.
- The Bertrand model, in which, in a game of two firms, each one of them will assume that the other will not change prices in response to its price cuts. When both firms use this logic, they will reach a Nash Equilibrium.
Politics
Modern American politics has been described as a duopoly since the Republican and Democratic parties have dominated and framed policy debate as well as the public discourse on matters of national concern for about a century and a half. Third Parties have encountered various obstacles to getting onto ballots at different levels of government, more so in recent decades.
See List of political parties in the United States for a more comprehensive look at the politics of the Two-party system, Duverger's law.
Examples in business
- Pepsi vs Coca-Cola in soft drink market
- Airbus vs Boeing in commercial jet aircraft market
- Sotheby's vs. Christie's in diamond auctions
- Marvel Comics vs. DC Comics in comic books
- Sirius vs. XM in the satellite radio market
- Microsoft Internet Explorer vs. Mozilla Firefox in Web browser market
- The local cable company vs. the local telephone company in residential broadband Internet access
- Telecom Vs. Vodafone in the New Zealand Mobile Market.
Broadcasting
Duopoly is also used in the broadcast television and radio industry, referring to a single company owning two outlets in the same city. In the United States, this has been frowned upon when using public airwaves, as it gives too much influence to one company. In Canada, this definition is more commonly called a "twinstick".
See also concentration of media ownership.
Examples in American television
- Cleveland, Ohio: WOIO-CBS 19 and WUAB-UPN 43 (Raycom Media)
- Dayton, Ohio: WKEF-ABC 22 and WRGT-Fox 45 (Sinclair Broadcast Group)
- Buffalo, New York: WIVB-CBS 4 and WNLO-UPN (LIN TV)
- Buffalo, New York: WUTV-FOX 29 and WNYO-the WB (Sinclair Broadcast Group)
- Raleigh, North Carolina: WRAL-CBS 5 and WRAZ-FOX 50 (Capitol Broadcasting)
- Raleigh, North Carolina: WLFL-the WB 22 and WRDC-UPN 28 (Sinclair Broadcast Group)
- Washington, DC: WTTG-FOX 5 and WDCA-UPN 20 (Fox Television Stations Group)
- New Orleans: WNOL-WB 38 and WGNO ABC 26 (Tribune Broadcasting)
- Norfolk, Virginia: WAVY-NBC 10 and WVBT FOX 43 (LIN TV)
- New York, New York: WWOR-TV - UPN 9 and WNYW - Fox 5 (Fox Television Stations Group)
- Boston, Massachusetts: WBZ-CBS 4 and WSBK-UPN (CBS Corporation)
- Minneapolis-St. Paul, Minnesota: KSTP-ABC 5 and KSTC-IND 45 (Hubbard Broadcasting)
- Salisbury, Maryland: WBOC-TV - CBS 16 and WBOC-TV Fox DT21.2 (Draper Holdings Business Trust)
- Denver, Colorado: KUSA-TV - NBC 9 and KTVD UPN 20 (Gannett)
- Los Angeles, California: KCOP-TV - UPN 13 and KTTV Fox 11 (Fox Television Stations Group)
See also
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