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Simple English definitions for legal terms
oligopsony
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A quick definition of oligopsony:
Term: OLIGOPSONY
Definition: Oligopsony means that only a few big buyers or customers control or dominate a market. This can make it hard for sellers to get a fair price for their goods or services. Oligopsonistic is the word used to describe this situation, and an oligopsonist is someone who benefits from it.
A more thorough explanation:
Definition: Oligopsony is a situation where a few large buyers or customers have control or domination over a market.
Example: The agricultural industry is an example of oligopsony, where a few large food processing companies have control over the prices paid to farmers for their crops.
Explanation: In an oligopsony market, the few large buyers or customers have the power to dictate the terms of trade, including the price paid for goods or services. In the agricultural industry example, the farmers have limited options to sell their crops, and the large food processing companies can offer lower prices, which the farmers have to accept to stay in business.