Economy

Oligopsony

The word oligopsony comes from the Greek words "oligos" which means little, and "psonio" which means buy. Completely opposed to the Oligopoly, where power belongs to the producers or sellers. It is a market and competition situated in what we normally know as imperfect competition, which arises within a market and in which there is a small number of plaintiffs in whom all control and power is left over the prices of different products and over the quantities of a product in the market. This means that, the benefits are mainly for buyers who have an intermediary role, not so in the producers, who are going to be affected when their situation gets worse because they do not get a reasonable price for the products they make. There are many suppliers, but very few demanders, in other words, all power lies in the buyer's hands.

Oligopsony

Related topics

Duopoly, monopoly, oligopoly

What is oligopsony?

Oligopsony is part of the imperfect competition that occurs in a market in which there are few demanders, and in them all control and power is delegated over the different prices of products and over the quantities generated from it, buyers are the most benefited by acting as intermediaries.

Oligopsony characteristics

Oligopsony advantages

Some of the advantages that we can observe inside an oligopsony are:

Disadvantages

Examples of oligopsony

Some examples that we can observe commonly and that many times we do not know are mentioned below.

Written by Gabriela Briceño V.
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