Classical theory of monopoly (oligopoly) states that the result of large companies operating on oligopolistic markets is reduced production output, increased prices and profits, and decelerated technological progress. Under this approach, oligopoly seems to be less desirable than pure monopoly in terms of economic efficiency. Competition on the market of several large independent companies is rather a veneer than essence of businessprocesses due to the classical fundamental problem of oligopoly - collusions and strategic cooperation.
