Distinguish between cooperative and non-cooperative oligopoly. OR… - Vidyadip

Question

Distinguish between cooperative and non-cooperative oligopoly.
OR
Differentiate between collusive and non-collusive oligopoly.

✓

Answer

S. No	Basis	Collusive Oligopoly	Non-Collusive Oligopoly
1.	Meaning	When in an oligopoly market, the firms cooperate with each other in determining prices and output both.	When in Oligopoly market, the firm's compete with each other.
2.	Profit	Under Collusive Oligopoly, the firms would behave as a single monopoly (i.e., cartel) and aim at maximising their collective profit rather than their individual profits.	Under Non-Collusive Oligopoly, each firm aims at maximising its own profits and decides how much quantity to produce assuming that the other firms would not change their quantity supplied.
3.	Aim	All firms collude to form a cartel and fix output and price by themselves through output quotas and market price.	Each firm tries to increase its market share through competition.
4.	Alternative Name	Cooperative Oligopoly.	Non-Cooperative Oligopoly.

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