Oligopolies Compete for Customers, Differentiation Boosts Efficiency
The article explores how companies compete in markets where only a few big players hold power. It looks at how these companies try to stand out from each other and how this affects how well they can attract customers. The researchers found that when companies offer different things to customers, they can get more customers without spending a lot of money on advertising. This levels the playing field between companies that start off with different strengths. So, in markets where only a few major companies compete, having unique products or services can help them succeed without spending a lot on marketing.