oligopsony

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Related to oligopsonistic: oligopsonies

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.

oligopsony

a form of BUYER CONCENTRATION, that is, a MARKET situation in which a few large buyers confront many small suppliers. Powerful buyers are often able to secure advantageous terms from suppliers in the form of BULK-BUYING price discounts and extended credit terms. See also OLIGOPOLY, BILATERAL OLIGOPOLY, COUNTERVAILING POWER.
References in periodicals archive ?
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 multimedia companies.
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.
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.
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 input bases.
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.