An oligopoly is a market structure where a small number of firms dominate the industry. These companies have significant market power, which allows them to influence prices and production levels. Because there are only a few players, the actions of one firm can directly impact the others, leading to strategic behavior and interdependence among them. In an oligopoly, firms often engage in non-price competition, such as advertising and product differentiation, to attract customers. Examples of industries that exhibit oligopolistic characteristics include automobiles, telecommunications, and airlines. This market structure can lead to higher prices and less innovation compared to more competitive markets.