Oligopsony refers to a market situation where a small number of major buyers or customers have control or dominance. This can create difficulties for sellers in obtaining a fair price for their goods or services. The term oligopsonistic is used to describe this scenario, and an individual who benefits from it is known as an oligopsonist.
An oligopsony occurs when a small number of major buyers or customers dominate a market. For instance, the agricultural industry is a prime example of oligopsony, as a few large food processing companies have significant control over the prices paid to farmers for their crops. In an oligopsony market, these few buyers have the authority to determine the terms of trade, including the price of goods or services. In the agricultural industry scenario, farmers have limited alternatives for selling their crops, leaving them no choice but to accept the lower prices offered by the large food processing companies in order to sustain their businesses.
An oligopsony is a market structure where a few large buyers dominate the market and have significant control over the prices and terms of purchase.
Oligopsonies are generally legal unless they engage in anti-competitive practices, such as price-fixing or collusion, which can harm competition and consumers.
Yes, oligopsonies can abuse their market power by engaging in unfair trade practices, such as imposing unfair terms, coercing suppliers, or engaging in predatory pricing.
You can identify an oligopsony by analyzing the market structure, the number of dominant buyers, and their ability to influence prices and terms of trade.
Yes, if you believe an oligopsony is engaging in anti-competitive behavior or abusing its market power, you can file a complaint with the relevant competition authority or seek legal advice.
Victims of oligopsony abuse may be entitled to damages, injunctive relief, or other remedies available under competition laws, depending on the jurisdiction.
Yes, if an oligopsony engages in anti-competitive practices, it can be held liable for antitrust violations, which may result in fines, penalties, or other legal consequences.
Some jurisdictions have specific regulations or laws that address the conduct of oligopsonies, such as prohibiting unfair trade practices or imposing stricter scrutiny on their activities.
In certain cases, if an oligopsony’s market power is deemed to be detrimental to competition and consumers, the government may take measures to break it up or impose stricter regulations.
Suppliers who suspect oligopsony abuse should gather evidence, consult legal counsel, and consider filing a complaint with the relevant competition authority to initiate an investigation into the alleged misconduct.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/oligopsony/
- Modern Language Association (MLA):Oligopsony. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/oligopsony/.
- Chicago Manual of Style (CMS):Oligopsony. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/oligopsony/ (accessed: May 09 2024).
- American Psychological Association (APA):Oligopsony. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/oligopsony/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts