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Oligopsony

Definition

An oligopsony is a market form in which the number of buyers is small while the number of sellers in theory could be large. This typically happens in a market for inputs where numerous suppliers are competing to sell their product to a small number of buyers. It contrasts with an oligopoly, where there are many buyers but few sellers. An oligopsony is a form of imperfect competition.

What is 'Oligopsony'

Oligopsony is similar to an oligopoly (few sellers), this is a market in which there are only a few large buyers for a product or service. This allows the buyers to exert a great deal of control over the sellers and can effectively drive down prices.

Explaining 'Oligopsony'

A good example of an oligopsony would be the U.S. fast food industry, in which a small number of large buyers (i.e. McDonald's, Burger King, Wendy's) controls the U.S. meat market. Such control allows these fast food mega-chains to dictate the price they pay to farmers for meat and to influence animal welfare conditions and labor standards.


Further Reading


Oligopsony-Oligopoly The perfect imperfect competition
www.sciencedirect.com [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Oligopsony and monopsonistic competition in labor marketsOligopsony and monopsonistic competition in labor markets
www.aeaweb.org [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Oligopsony power, asset specificity, and hold-up: Evidence from the broiler industryOligopsony power, asset specificity, and hold-up: Evidence from the broiler industry
academic.oup.com [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Analysis on the vertical squeeze on local suppliers by the oligopsony power of MNCAnalysis on the vertical squeeze on local suppliers by the oligopsony power of MNC
en.cnki.com.cn [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

'Fair trade'coffee and the mitigation of local oligopsony power'Fair trade'coffee and the mitigation of local oligopsony power
academic.oup.com [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Oligopsony, institutions and the efficiency of general trainingOligopsony, institutions and the efficiency of general training
papers.ssrn.com [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Bank pricing under oligopsony-oligopoly: Evidence from 103 developing countriesBank pricing under oligopsony-oligopoly: Evidence from 103 developing countries
papers.ssrn.com [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Process innovation activity in a mixed oligopsony: the role of marketing cooperativesProcess innovation activity in a mixed oligopsony: the role of marketing cooperatives
ageconsearch.umn.edu [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …

Testing for oligopsony power in the Finnish wood market.Testing for oligopsony power in the Finnish wood market.
www.cabdirect.org [PDF]
Oligopoly and oligopsony have been studied extensively. However, the dual figure of the oligopsonistic-oligopolistic intermediary has not been. This dual personality has a double negative impact on the market, on the one hand reduces the demand to producers who face …


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