What does duopsony mean?
Duopsony refers to a market structure in which two firms have complete control over the market, allowing them to set prices and output levels. This can lead to a lack of competition and higher prices for consumers. Duopsony is often used in economics and business to describe a market structure with limited competition. It is a key concept in understanding the behavior of firms and the impact of market structures on consumers. Duopsony can be contrasted with perfect competition, where many firms compete with each other, leading to lower prices and higher quality products. Duopsony is an important concept in understanding the complexities of market structures and the impact of firms on the economy.
nounA market structure in which two firms have complete control over the market, allowing them to set prices and output levels.
- A market structure in which two firms have complete control over the market, allowing them to set prices and output levels.
"The duopsony in the industry led to a lack of competition and higher prices for consumers."
"The duopsony in the industry led to a lack of competition and higher prices for consumers."
"The government investigated the duopsony for antitrust violations."
The plural form duopsonies is used to describe multiple market structures with two dominant firms.
"The government investigated several duopsonies for antitrust violations."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of duopsony
The term duopsony comes from the Greek words 'duo' meaning two and 'sony' meaning seller. It was first used in the 19th century to describe a market structure with two dominant firms. The term has since been used in economics and business to describe a range of market structures with limited competition.
How duopsony is actually used
Duopsony is often used in economics and business to describe a market structure with limited competition.