Comparison Chart

BASIS FOR COLLUSIVE NON-COLLUSIVE

COMPARISON OLIGOPOLY OLIGOPOLY

Meaning A Collusive Oligopoly is one A Non-Collusive Oligopoly is

in which the firms cooperate one wherein each firm in the
and not compete, with one industry pursues a price and
another with respect to price output policy that is
and output. independent of competitors.

Profit Collective profit Individual profit

Objective To reduce competition and To maintain competition and

to create and maintain entry to work independently as a
barriers. normal business.

Price and Output Mutual or Interdependent Independent

decision

Formation of Yes No
monopoly

Price benefit Consumers receive fewer Consumers receive price

price benefits, due to benefits due to competition
monopoly. between sellers.

Brand Loyalty No need to incur expenses to Powerful advertisement

create brand loyalty. creates brand loyalty.