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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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Further, the market is dominated by a handful of large multinational corporations, which have created a market that is oligopolistic--that is, it has only a few suppliers--while their retail sectors are oligopsonistic with only a few buyers. 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. 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. |
oligopsonistic |
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