Travelodge, Holiday Inn and Starbucks. Oligopoly is defined like this: There are a small number of large organizations that dominate the market, and each of these companies controls a large part of the market by producing differentiated products. These organizations must take into account the actions and reactions of their competitors when making business decisions – this is known as collusive oligopoly or collusion. These companies are interdependent and keep prices inelastic: if one organization were to raise prices, it would lose customers to rivals, and if it were to lower prices, its competitors would follow suit, so neither strategy would increase revenue. OPEC is one such organization that limits the supply of oil to keep the price high. Market entry is prohibitive due to, for example, government restrictions, high start-up costs or asset ownership such as in mining or drilling. The monopoly is defined