like a monopoly. an oligopoly has high barriers to entry. The products that the oligopolistic firms produce are often nearly identical and, therefore, the companies, which are competing for market share, are interdependent as a result of market forces. Assume, for example, that an economy needs only 100 widgets. Company x produces so widgets and its competitor. Company Y produces the other 50. The prices of the two brands will be interdependent and, therefore, similar. So. if Company X starts selling the widgets at a lower price. it will get a greater market share, thereby forcing Company Y to lower its prices as well.