Editing Oligopoly (section)

=== Tight and loose oligopoly ===
In a tight oligopoly, only a few firms dominate the market, and there is limited competition. A loose oligopoly, on the other hand, has many interdependent firms which often collude to maximise profits. Markets can be classified into tight and loose oligopolies using the four-firm concentration ratio, which measures the percentage market share of the top four firms in the industry.<ref>"Concentration Ratio Definition, How to Calculate With Formula". www.investopedia.com. Retrieved 24 April 2023.</ref> The higher the four-firm concentration ratio is, the less competitive the market is. When the four-firm concentration ration is higher than 60, the market can be classified as a tight oligopoly. A loose oligopoly occurs when the four-firm concentration is in the range of 40-60.<ref>"Oligopoly". xplaind.com. Retrieved 24 April 2023.</ref>