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Related to duopoly: Bertrand duopoly


A condition in which two entities dominate a market. Pronounced "doo-op-a-lee." For example, Windows and Mac are a personal computer duopoly. iOS and Android are a smartphone duopoly.
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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



a term used in bourgeois political economy to define a market structure of a sector of the economy in developed capitalist countries in which there are only two suppliers of a certain commodity and they have made no monopolistic agreements on prices, markets, production quotas, etc.

The concept of duopoly reflects various forms of market organization. The first form is a market that is dominated by two large commercial-industrial companies having a secret agreement ensuring maximum profit through nonequivalent exchange. Such a situation was typical in the beginning of the 20th century. The second form is a market of some contemporary sector of mass production that is controlled by two companies. Usually there exists between them a tacit agreement on monopolistic prices, and nonprice competition is practiced. The third form is a market in which there are two suppliers but a complete absence of any monopolistic agreement. This is possible under two conditions: the temporary situation in which a new commodity is initally being produced, involving a “test of strength” between two suppliers, and the situation in which competition is bitter during a transition period from simple to more developed forms of monopoly. Some bourgeois economists point to the latter to prove the possibility of a continuous absence of monopoly in conditions of highly concentrated production. The majority of contemporary bourgeois economists, however, consider duopoly as a variety of monopoly (a view that corresponds to the facts).

Economic and mathematical research in duopoly was begun in the 19th century by A. Cournot and J. Bertrand of France and F. Edgeworth of Great Britain. In the 1930’s, H. Stackelberg (Germany) described certain aspects of duopoly that depended on the conduct of duopolists. The contemporary theory about duopoly originated under the influence of the monopolistic competition theories of E. H. Chamberlin (USA) and the imperfect competition theories of J. Robinson (England); the works of R. Triffin (USA) began to take into account the more complicated character of real market conditions, such as the interdependence of economic sectors, the changes in demand and in assets, different kinds of duopoly and market institutions, the scope of information about the market, and so on.


Chamberlin, E. H. Teoriia monopolisticheskoi konkurentsii. Moscow, 1959. (Translated from English.)
James, E. Istoriia ekonomicheskoi mysli XX v. Moscow, 1959. (Translated from French.)
Seligman, B. Osnovnye techeniia sovremennoi ekonomicheskoi mysli. Moscow, 1968. (Translated from English.)
Neumann, J., and O. Morgenstern. The Theory of Games and Economic Behavior. Princeton, 1944.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
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References in periodicals archive ?
One of President Duterte's campaign promises is the entry of a third telco player, breaking the duopoly of Globe and Smart.
A third Telco made up of Philippine and foreign communication companies is attempting to break the duopoly of Smart and Globe companies.
If we are trying to break up the "duopoly" among the telcos, why are we trying to build a duopoly in tower service provision?
but the Justice Department thwarted the transaction, suggesting a different owner with no duopoly concerns step in to grab it.
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A lot is made in the industry of the dominance of two key players, Google and Facebook, and the resultant race to challenge the duopoly, and frankly it's not very hard to see why.
While the Duopoly focuses on 5G hotspots in urban areas, T-Mobile understands that customers need a 5G connection that won't disappear when they leave the house or get to the end of the block.
In the duopoly model optimal R&D increases reliability, consumer surplus, and social surplus more than it does in the equivalent monopoly model, but it does not necessarily increase profits.
By: Egypt Today staff CAIRO - 11 July 2017: A parliamentarian will submit a proposal to the House of Representatives to draft a law to regulate the digital advertising market, amid global efforts taken by a group of editors-in-chief, particularly in U.S., against Facebook and Google duopoly. Lawmaker Mustafa Bakry told Egypt Today on Tuesday that a number of other parliamentarians will submit a request for drafting a law against the duopoly of digital ads.
[5] analyzed the dynamics of a Bertrand duopoly with products which become divided.
Cournot [1] first introduced the game model which gives a mathematical description of the dynamic competition in a duopoly market.