A market condition in which purchasers are so few that the actions of any one of them can materially affect price and the costs that competitors must pay.
Control of the purchase of a commodity or service in a given market by a small number of buyers.
A situation in which a small group of companies share control of the market for buying a good or service. Because there are few buyers, they can jointly exert strong influence over wholesale prices. It is the buy-side counterpart to an oligopoly. Food processers, such as beef and pork processors, may hold oligopsony power.
Origin of oligopsony
- olig(o)– (mon)opsony
From American Heritage Dictionary of the English Language, 5th Edition
- From Ancient Greek á½€Î»Î¯Î³Î¿Î¹ (oligoi, “few") + á½€ÏˆÏ‰Î½Î¯Î± (opsÅnia, “purchase"), corresponding to oligo- +"Ž -opsony.