Travelodge, Holiday Inn and Starbucks. Oligopoly is defined as: There are a small number of large organizations that dominate the market and each of these companies controls a large portion of the market by producing differentiated products. These organizations must take into account the actions and reactions of their competitors when making business decisions – this is called collusive oligopoly or collusion. These businesses are interdependent and keep prices inelastic: if an organization were to raise its prices, it would lose customers to its competitors, and if it were to lower its prices, its competitors would follow suit, so neither strategy would increase his income. OPEC is one such organization that restricts the supply of oil to keep prices high. Market entry is prohibitive due to, for example, government restrictions, high start-up costs or resource ownership such as mining or drilling. Monopoly is defined