From Conservapedia
Jump to: navigation, search

In economics, an oligopsony is a demand-side market structure characterized by a small number of buyers. It is most commonly seen in factor markets wherein a few firms compete for factors of production. In such a situation, the oligopsonists retain a significant amount of market power, as they can drive prices down by spurring competition between sellers.

The supply-side equivalent of oligopsony is oligopoly, in which a market is dominated by a small number of sellers.