What's a duopoly? How and when did this come to form in United States History?

Answer 1

A duopoly is an economic term that refers to a market structure in which two dominant firms have substantial control over the market and compete with each other. These two companies effectively control the supply and pricing in the market, often resulting in reduced competition.

One example of a duopoly in United States history was the competition between the railroad companies, the Union Pacific and the Central Pacific, during the 19th century. These two companies were responsible for constructing the first transcontinental railroad in the United States. In 1862, the United States Congress passed the Pacific Railroad Act, which authorized the construction of the railroad and provided loans and land grants to the two companies. The Union Pacific started construction from the east, while the Central Pacific started from the west. Eventually, the two companies met at Promontory, Utah, in 1869, completing the transcontinental railroad.

This event led to the formation of a duopoly as the Union Pacific and Central Pacific became the primary players in the railroad industry, controlling a vast portion of the market. They jointly set rates and had significant control over transportation across the country, limiting competition from other railroad companies. This duopoly lasted for several years until other railroads started to emerge, challenging their dominance.