Definition

A market situation where there are only a few buyers, and their decisions can significantly impact prices and costs in the market.

Example

In an oligopsony, the limited number of buyers can dictate terms to suppliers.

Conversation

Have you ever heard of an oligopsony?

Yeah, it's when a few buyers control the market, right?

Exactly! It makes things tricky for sellers, doesn't it?

For sure, those buyers can really affect prices.

Synonyms & Antonyms

Root Explanation

Oligopsony → It is formed from "oligo-" (from Greek "oligos", meaning few or little) and "opsonia" (from Greek "opsōnion", meaning purchase or food). The word describes a market situation where there are few buyers for many sellers, indicating limited purchasing power.

Memory Tip

Think of 'few' ('oligo-') buyers in a market where they are 'purchasing' ('opsonia') from many sellers. This helps you remember that oligopsony refers to a market dominated by a small number of buyers.

Visually Confused Words