What Is a Duopoly?

A duopoly occurs when two businesses own all, or nearly all, of the market for a certain product or service. A duopoly, or market controlled by a limited number of businesses, is the most basic type of oligopoly. If the two firms agree on pricing or production, a duopoly might have the same market influence as a monopoly.
Consumers pay greater costs as a result of collusion than they would in a fully competitive market, therefore it is prohibited under US antitrust law.
A duopoly occurs when two competing firms control the bulk of a market sector for a product or service they offer. Even if it provides additional services that do not fit into the market area in issue, a company might be a part of a duopoly.
Google and Facebook, for example, have dominated the digital advertising scene for much of this decade and constitute a duopoly, although Google is not linked with a duopoly in any of its other product areas, such as computer software.

Duopoly is the part of oligopoly market. It is the condition when there are only 2 firms producing a product or we can say there are only 2 firms which have complete dominance over market.

If we talk about examples then some of the fine examples are mentioned below

  • Visa and MasterCard are two of the major companies which have a large proportionate of acquisition in the market of online payment transaction or electronic payment processing market.

  • Pepsi and Coca Cola are two major beverage companies which have complete control over market.

  • if we talk about the item we use most in our daily life i.e. our phone then Apple’s IOS and Google’s Android are two of the companies which have complete control over mobile operating system market