Because the market outcomes in a competitive oligopoly are between those of a monopoly and a perfectly competitive market, the deadweight loss still exists, but it is lower than when there is collusion.
An oligopolistic market, as Irving Fisher describes it, is a market with “no competition,” creating a situation where a particular person or company is the sole supplier of a particular thing. A monopoly is a situation in which there is only one seller in the market. In conventional economic analysis, the monopoly case is seen as the polar opposite of perfect competition.
A monopoly is a business that is the sole seller of its product and has no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and Diamonds, your local natural gas company.
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