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oligopsony
Mar. 26th, 2009 07:20 amoligopsony - n., a market condition in which each of a few buyers exerts a disproportionate influence on prices.
Stress the third syllable, OPS. Contrast with oligopoly, in which there are only a few sellers. And yes, there can be a monopsony, where a single buyer gets to set the price they'll pay. Examples of oligopsonies include the U.S. fast-food market, where a small number of large buyers (McDonald's, Wendy's, Burger King) can set the price they pay for meat from suppliers, and the world cocoa market where three firms buy almost all the supply from small third-world farmers. From Greek roots oligo-, few + opsōnein, to purchase provisions, from opson, food + ōneisthai, to buy.
---L.
Stress the third syllable, OPS. Contrast with oligopoly, in which there are only a few sellers. And yes, there can be a monopsony, where a single buyer gets to set the price they'll pay. Examples of oligopsonies include the U.S. fast-food market, where a small number of large buyers (McDonald's, Wendy's, Burger King) can set the price they pay for meat from suppliers, and the world cocoa market where three firms buy almost all the supply from small third-world farmers. From Greek roots oligo-, few + opsōnein, to purchase provisions, from opson, food + ōneisthai, to buy.
---L.
