buyer concentration

buyer concentration

see MARKET CONCENTRATION.

buyer concentration

an element of MARKET STRUCTURE that refers to the number and size distribution of buyers in a market. In most markets, buyers are numerous, each purchasing only a tiny fraction of total supply. In some markets, however, most notably in INTERMEDIATE GOODS industries, a few large buyers purchase a significant proportion of total supply. Such situations are described as OLIGOPSONY, or, in the case of a single buyer, MONOPSONY.

Market theory predicts that MARKET PERFORMANCE will differ according to whether there are many buyers in the market, each accounting for only a minute fraction of total purchases, (PERFECT COMPETITION), or only a few buyers, each accounting for a substantial proportion of total purchases (oligopsony), or a single buyer (monopsony). See COUNTERVAILING POWER, MARKET CONCENTRATION, SELLER CONCENTRATION, BULK-BUYING.

References in periodicals archive ?
15) The four-firm buyer concentration level in the fed cattle market increased from 35.
19) In 2011, however, due to the extremely high (85%) level of buyer concentration in the fed cattle market (i.
Last year, the 19th ProPak Asia conference attracted 33,376 trade buyers from 61 countries, with the top ten key Asian buyer concentration from Malaysia, India, Singapore, Japan, Vietnam, Indonesia, Phillipines, China, Myanmar and Bangladesh.
If a merger would result in a monopsony or a substantial increase in buyer concentration, the Clayton Act would appear to condemn such a merger irrespective of any efficiencies.
The company facility (5,000 square feet) is located in Northeast Georgia on the current owner's personal property and would need to be relocated, but due to nationwide sales area this company could be located anywhere in the United States (the zip code listed is for and due to buyer concentration search only).
To sum up: regardless of the objective of the monopsonist or the market structure for the final product, monopsony (and increased overall inefficiency) would be indicated if (a) buyer concentration was associated with a reduced unit price for inputs and (b) that lower price was nevertheless associated with smaller quantities of the input.
The key empirical test for monopolizing monopsony following on health plan buyer concentration is not the effect on unit prices of medical services or the effect on premiums.
The "80-20 rule that describes buyer concentration is a predictable feature of consumer behavior for established brands.
In reviewing buyer concentration across several categories, he suggests that "Ehrenberg's figures are illustrative and based on a small sample of brands: therefore, probably not intended to describe averages" (Jones, 1995).
Those indicating greater than 75 percent were assigned a value of one to a buyer concentration dummy variable, [D.
ProPak Asia has certainly earned its name in the manufacturing industry, having attracted 30,663 trade buyers from 59 countries with key Asian buyer concentration from Singapore, Malaysia, India, Japan, Indonesia, Myanmar, Vietnam, the Philippines, Pakistan and China at its 18th Pro Pak Asia event last year.
There are, of course, exceptions, but our common experience and observation tell us that high buyer concentration is unusual.