oligopsony

(noun)

An economic condition in which a small number of buyers exert control over the market price of a commodity.

Related Terms

Examples of oligopsony in the following topics:

  • Impact of Unions on Unemployment

    • Rather, many industries are dominated by only a few firms, making the labor market an oligopsony - a market with many sellers of labor but only a few buyers.
    • In an oligopsony firms have the advantage over workers, and wages may be lower than they would be at the competitive equilibrium.