By: Nolan Glunz

Delta Airlines

The commercial plane business is considered on Oligopoly. The only other airlines in the United States are American and United. Oligopoly means there is very few, but more then just one seller. Delta would be an example of a business in an Oligopoly.

Advantages vs Disadvantages for the business

Advantages: Market only has a few sellers, not a lot of options when it comes to the airline business. Sellers can "try" to conspire to change prices, not often successful. Many barriers to get into the market, less likely for any more competition.

Disadvantages: Very hard to leave the market once you are in, less likely to lose any competition. Firms sell either sell identical or similar products, very hard to be ahead of your competition. Buyers sometimes form a "cartel" group that is capable to act with monopolisitic power.


This video describes the business structure of an oligopoly.