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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.
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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 |
Oligopsony |
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