Oligopsony

Oligopsony,

Definition of Oligopsony:

  1. 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.

  2. 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.

  3. Market situation where presence of few buyers and many suppliers creates a buyers market. Mirror image of oligopoly.

  4. A state of the market in which only a small number of buyers exists for a product.

How to use Oligopsony in a sentence?

  1. Economists refer to this as an oligopsony: a market with few buyers.
  2. An oligopsony concentrates the market for a product in the hands of a few big players.
  3. The supermarket industry is emerging as an oligopsony with global reach.
  4. The buyers dominate the market, keeping prices down and wielding considerable influence over the industry.

Meaning of Oligopsony & Oligopsony Definition