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 ?
And it's good for most networks, too, because their collective market power gives them a better outcome than if the cable and satellite distributors could exert their oligopsony powers unchecked.
Oligopsony fed cattle pricing: did mandatory price reporting increase meatpacker market power?
It is interesting that oligopsony power tends to be higher in 2011 than 2010 during peak hours: this can be explained with the threefold increase of renewable supply (mainly PV) that occurred in the same period, resulting in abundant supply with priority dispatching.
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.
In the immediate post-independence period, the global trading system remained highly inefficient, with advanced economies drawing on their technological edge to enjoy tremendous market powers--monopoly or oligopoly on the supply side, and monopsony or oligopsony on the demand side.
The concentrated nature of education markets suggests two alternative models of teacher wage determination: the first is a classic oligopsony model and the second is a rent-sharing model.
The alleged justification for these exemptions was the market structure of the farming industry and the monopsony or oligopsony power of processing and marketing firms (86).
2008), "The Role of 'Integrated Production' Scheme in the New Fruit and Vegetable CMO: A Tool for Competitiveness, Sustainability or Oligopsony by Large Retail Chains?
As in the traditional oligopsony model, however, fertility centers accept reduced access to inputs in exchange for a lower purchase priceY' In other words, assuming that the marginal cost of any unit of a good is the price paid on all prior units, an oligopsonist will fail to purchase some units whose value to the oligopsonist exceeds their costs in order to cap the purchase price of prior units.
In such a context, the distribution layer enjoyed greater bargaining power with respect to the production layer in so far as the latter confronted, in many countries, a situation akin to monopsony or oligopsony.
Thus buyer power arises from monopsony (one buyer) or oligopsony (a few buyers), and is the mirror image of monopoly or oligopoly.
This effective global oligopsony can strongly influence, and in fact participate in, the direction any development effort may take.