What is generally true about oligopolists regarding competition?

In an oligopolistic market structure, which is characterized by a small number of firms that have significant market power, it is generally true that these firms tend to avoid direct price competition. This avoidance is primarily due to the interdependent nature of the firms within the oligopoly: each firm is aware that its pricing strategies will have an immediate impact on its competitors and the overall market.

Oligopolists often prefer to engage in non-price competition strategies, such as advertising, product differentiation, and improving customer service, rather than undercutting each other's prices, which can lead to a price war. A price war can be detrimental to all firms involved, potentially reducing overall profits and destabilizing the market.

Furthermore, while some oligopolists may collude to set prices (which is illegal in many jurisdictions), this is not a universal behavior. The tendency to avoid direct price competition is rooted in the desire to maintain market stability and profitability, making this choice a more accurate reflection of oligopolistic behavior.