16:33
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Simple English definitions for legal terms
duopsony
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A quick definition of duopsony:
Term: DUOPSONY
Definition: Duopsony is a type of market where there are only two buyers for a product. This means that the sellers have limited options to sell their products and the buyers have more bargaining power to negotiate the price. It's like a game of tug-of-war between the two buyers, where the seller is caught in the middle.
A more thorough explanation:
Definition: Duopsony is a market situation where there are only two buyers for a particular product or service.
Example: The market for coffee beans in a small town where there are only two coffee shops that buy coffee beans from farmers. In this case, the coffee shops have a significant influence on the price of coffee beans, and the farmers have limited options to sell their products.
Explanation: In a duopsony market, the two buyers have a significant bargaining power, and they can dictate the price and terms of the transaction. This situation can lead to unfair pricing for the sellers, as they have limited options to sell their products. In the example above, the coffee shops can negotiate a lower price for coffee beans, and the farmers have to accept it as they have no other buyers in the market.