Definition of Oligopsony:
The opposite effect can be seen in an oligopoly. It is a market that is dominated by a few sellers, who can keep prices high in the absence of competition from alternative sources of supply.
An oligopsony is a market for a product or service which is dominated by a few large buyers. The concentration of demand in just a few parties gives each substantial power over the sellers and can effectively keep prices down.
Market situation where presence of few buyers and many suppliers creates a buyers market. Mirror image of oligopoly.
A state of the market in which only a small number of buyers exists for a product.
How to use Oligopsony in a sentence?
- Economists refer to this as an oligopsony: a market with few buyers.
- An oligopsony concentrates the market for a product in the hands of a few big players.
- The supermarket industry is emerging as an oligopsony with global reach.
- The buyers dominate the market, keeping prices down and wielding considerable influence over the industry.
Meaning of Oligopsony & Oligopsony Definition