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3.2 Airline Economics1Airline EconomicsOligopoly is a market structure in which a small number of firms has the largemajority of market share. An oligopoly is similar to a monopoly, except that rather than onefirm, two or more firms dominate the market. There is no precise upper limit to the number offirms in an oligopoly, but the number must be low enough that the actions of one firmsignificantly impact and influence the others. (INVESTOPEDIA) Oligopolistic industriestypically are characterized by high barriers to entry… In addition to few sellers, a similarproduct, and high obstacles to entry, oligopolistic industries tend to share several othercharacteristics. (Wensveen, 2011) Other general characteristics include, substantialeconomies of scale, growth through merger, mutual dependence, and price rigidity and non-price competition. The airline economic characteristic, however, has unique features thanother oligopolistic industries.