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.
If the United States is committed to a competitive healthcare economy, eliminating oligopsonistic conditions in industries such as health insurance and hospitals is vital.
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.
This essay has shown that his agents also learned to master the intricacies of the barter system, which treated them and their oligopsonistic suppliers well.
Qualcomm raises the specter of oligopsonistic exploitation of patent holders, thereby creating disincentives to their participation in and full disclosure in connection with standard-setting activities.
Market power may be either oligopolistic power of a few dominant sellers in the output market or oligopsonistic power of a few dominant buyers in the input market, reflecting significant influence on the market by a few firms.
Nevertheless, the overall retail buying behaviour versus upstream meat processors in the state of Hessen clearly has to be classified oligopsonistic.
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.
In other sectors however an asymmetry seemed to arise between the low-technology and small scale suppliers and the highly concentrated (monopsonistic or oligopsonistic) commercial purchasers, with a fall in market prices and alleged increases in trade margins.
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.