This document defines and describes oligopoly. It begins by defining oligopoly as a market situation where a small number of firms control the market. It then provides examples of oligopolies, such as the retail gas market. The document outlines key characteristics of oligopolies, including interdependence, and describes different price leadership models that can occur in oligopolies, such as barometric, low-cost, and dominant firm price leadership. It concludes by stating that in an oligopoly, the main firm sets the price that is then followed by other competing firms.