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Oligopsony

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Oligopsony
A Market characterized by a small number of large buyers who control all purchases and therefore the market price of a good or service.

Oligopsony
A market in which there are only a few, very large buyers. Sellers in an oligopsony may have difficulty remaining in business as the buyers have a great deal of power to dictate prices. This may affect both the profit margin and other factors, such as labor conditions or wages. It is the opposite of an oligopoly.

oligopsony
A market in which a limited number of buyers follow the leadership of a single large firm. For example, in a town or region, a large bank may set rates on certificates of deposit that are then adopted by smaller banks and savings and loan associations on their own certificates of deposit. Compare oligopoly.


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The Optimal Livestock Slaughter The starting point of the analysis is the same as that considered in Azzam (2003), namely, a homogeneous, risk-averse oligopsony of N symmetric packers, (9) whose objective is to maximize the expected utility of profits.
Their market power is typically based on high concentration and oligopsony power, where many farms deliver to a single processor or trader (Hobbs et al.
be Table 1 Enterprise's development stage and investors' desired return Development Stage Seed Start-up Early stage Desired return 80-100% 40-70% 30-40% Market structure mono/ oligopoly competition oligopoly Risk level very high Rather high normal Development Stage Expansion Mature Desired return 25-30% 20% Market structure oligopsony mono/ oligopsony Risk level limited very limited
 
 
 
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