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 ?
To,: Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives 16:2 (2002): 155-174; C.
From the results it is concluded that technical inefficiency is highest where the market structure resembles monopsony and lowest where the market structure resembles oligopsony.
Boal and Ransom (1997) lay out a classic Cournot model of oligopsony that can be directly applied to the educational labor market.
7) They correctly note that B2B buyers can profit from oligopsony agreements--agreements to buy an anticompetitively low level of inputs.
Economists argue that shortages are related to a lack of or lagged increase in real wages (Friss 1994), an imperfectly competitive market such as in monopsony or oligopsony (Yett 1975), or a problem with geographic distribution and specialty (Yett 1970; Friss 1994).
This exchange situation is formally called monopsony or oligopsony.
Ag producers, however, face oligopsony power which involves the exercise of market power to reduce prices paid to sellers, such as meat packers colluding to keep prices low.
A recent analysis confirms that while agricultural growth reduces rural poverty, a measure of oligopsony exacerbates poverty.
Only here's the catch: The predator exploiting its oligopsony (that's the demand-side version of "oligopoly") power is the government.
Models of industrial organization - oligopoly and oligopsony - appear to fit the large economic units in world trade, according to the HHI results.
The Sherman Act eventually was passed in 1890, after considerable lobbying by midwestern farmers, who claimed the Beef Trust exercised oligopsony power, and after a major congressional investigation (one of but three concerning trusts) into the Chicago packers.