New study reveals how oligopoly equilibrium can drive prices to zero.
The article explores how prices are determined in a market with a few big companies. It shows that when production costs are low, prices can be set at zero without losing customers. If costs are higher, there may be only one price that all companies agree on, or no agreement at all. The study also looks at what happens when companies have different costs and customer demands. In those cases, there is usually at least one price that works for everyone when customers are willing to pay more.