In short, economic theory indicates that the strictures in place to strengthen the powers of the oligopoly result in an optimal market outcome in the negotiations with the oligopsonistic
Thus, the oligopsonistic
market structure fits policy makers' ambition to maximise efficiency, and such a market is claimed to be competitive as it is contestable.
There may exist two reasons for oligopsonistic
Accordingly, this could facilitate oligopsonistic
exploitation of the standard-owner to depress royalties below competitive rates.
Market power, oligopsonistic
behavior, and price discovery were issues to some producers in the 1970s even though the CR4 in steer and heifer slaughtering was not high by economists' standards.
suppliers--while their retail sectors are oligopsonistic
with only a few
In Njoroge's study, collusion arises because risk-neutral oligopsonistic
packers, who have divergent priors about the distribution of livestock and meat prices before the Act, have convergent posteriors after updating their priors with the Reports.
Lowry and Winfrey (1974) hypothesized that markets with economies of scale, along with high raw material transportation costs, encourage the development of spatially dispersed firms with monopsonistic or oligopsonistic
79) In other words, revenues that once flowed to sellers "now flow into the coffers of the oligopsonistic
[buyers] in the form of reduced costs.
According to Gereffi (1994:100), in producer-driven commodity chains, states are more likely to play interventive roles, responding to the oligopsonistic
position of the transnational producers with policies that increase local control and input such as local content rules or encouragement of joint ventures.
Since the firms operate in oligopolistic and oligopsonistic
markets, cost advantages are not necessarily passed on to consumers in lower prices or to workers in higher wages, and the profits then accrue to the parent firms.
Under certain extreme conditions, when inequality in the distribution of land manifests itself in an oligopsonistic
labor market with few large landholders dominating through wage-setting, shifts in labor demand may have a small effect on agricultural wages relative to that in a competitive labor market.