What are the Characteristics of a Duopoly Market?

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A duopoly market is characterized by the presence of only two dominant firms that control a significant portion of the market share. This limited competition often leads to strategic interdependence, where each firm's actions directly impact the other. Price leadership may emerge, where one firm sets prices and the other follows. Barriers to entry are typically high, preventing new competitors from easily entering the market. Understanding these characteristics is crucial for analyzing market behavior in duopolies.

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