What is the difference between oligarchy and democracy, and how did each function in their respective city-states?

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The central idea is who actually holds political power and how people participate. Oligarchy means control by a small, privileged group; democracy means power rests with a large, broader segment of the population, typically the citizen body.

In Athens, power was exercised by many citizens in a direct sense. The Assembly gathered to vote on laws and important decisions, with a mix of offices filled by lot or election and payment to enable ordinary citizens to serve. Citizenship was limited to male residents, so not everyone had a vote, but within that citizen group decisions were made collectively and directly rather than through a single ruler.

In Sparta, authority rested with a relatively small elite. The Gerousia (council of elders), the two kings, and the ephors controlled most policy and governance, while the citizen assembly had a more limited, approving role. This arrangement reflects an oligarchic system, though it did incorporate several different strands (monarchical and aristocratic elements, plus some civic participation). That combination is why it’s often described as an oligarchy with mixed elements.

So the difference is rule by the many versus rule by a few, with Athens embodying democracy in practice and Sparta embodying oligarchy with notable mixed features.