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.

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 ?
D is the consumer demand for processed meat, while AE and ME are the average and marginal expenditure schedules (inclusive of the average and marginal cost of uncertainty) faced by the oligopsonistic packers, respectively.
Even when facilitating collusion among oligopsonistic packers, increased transparency can be social welfare enhancing.
Indeed, the relatively high cost of transporting roundwood requires that much of the raw material needed by mills be obtained from adjacent forests, resulting in various degrees of monopsonistic or oligopsonistic market power in sub-regions of the South (Newman 1987).
Indeed, some courts have erroneously assumed that oligopsonistic buyers will automatically pass their savings on to consumers.
Agricultural wages, on the other hand, may decline or fail to rise with expansion of labor supply in an oligopsonistic labor market, as a result of eviction of tenants.
The oligopsonistic nature of this fishery provided the opportunity for cooperative behavior, which was effected through formation of a Calico Scallop Conservation Association (CSCA)(3) in 1986 (Rockwood and Pompe(2)).
Based on the GMM model with labor market fixed effects, I generated 95% confidence intervals for the marginal effect of market concentration and used them to classify labor markets into oligopsonistic markets, rent-sharing markets, and competitively neutral markets.
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 only one or just a few mills in any one area, which they called monopsonistic or oligopsonistic input bases.
Testing oligopolistic and oligopsonistic behavior: An application to the U.
The coexisting monopsonistic and oligopsonistic (free agency) markets have led to extraordinary differentials in player salaries that have been well documented in economic literature, as in Kahn (1993).
This engaging essay on Pusan describes the worldwide athletic-shoe industry as oligopsonistic with Nike, Reebok, and L.
Monopsony power was weak: there were many employers; there is no evidence of successful oligopsonistic collusion among the larger employers around 1889; and employment in the industry was rapidly expanding.