Suppose an oligopoly has a dominant firm that sets the price for the entire industry. In this situation, the oligopoly has:

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In this situation, the dominant firm sets the price for the industry, but there are still competitive fringe firms that follow the price leadership of the dominant firm. This is known as price leadership with competitive fringes. It differs from a cartel because the fringe firms are not colluding to set prices together, and it differs from a kinked demand curve because there is a clear leader in setting the price. Non-price competition may still occur, but it is not necessarily the defining characteristic of the oligopoly.

Suppose an Oligopoly Has a Dominant Firm That Sets the Price