What does oligopsonistic mean?
Oligopsonistic refers to a market structure characterized by a small number of buyers. This can lead to reduced competition and increased market power for the buyers. The term is often used in economics and business to describe industries with limited buyer competition. Oligopsonistic markets can be challenging for new entrants, as they may struggle to compete with established buyers. Understanding oligopsonistic markets is essential for businesses and policymakers seeking to promote competition and fair market practices. By recognizing the characteristics of oligopsonistic markets, stakeholders can develop strategies to mitigate the negative effects and promote a more competitive environment.
adjectiveRelating to a market structure in which there are only a few buyers.
- Relating to a market structure in which there are only a few buyers.
"The oligopsonistic nature of the industry made it difficult for new entrants to compete."
"The oligopsonistic nature of the industry made it difficult for new entrants to compete."
"The company's oligopsonistic practices were investigated by the regulatory body."
The plural form is used to describe multiple oligopsonistic markets or structures.
"The company operated in several oligopsonistic markets across the country."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of oligopsonistic
The term oligopsonistic is derived from the Greek words 'olig-' (few) and '-pso-' (buyer), with the suffix '-nistic' (relating to). It was first used in the early 20th century to describe market structures with limited buyer competition. The concept has since been widely adopted in economics and business to analyze and understand the implications of oligopsonistic markets.
Usage notes
Oligopsonistic is often used in academic and economic contexts to describe market structures. It can be used interchangeably with oligopolistic, but the former emphasizes the role of buyers in the market.