Ads end in 20 seconds
This content is free thanks to our sponsors
Sponsored Ad – I may earn a commission if you click and buy
Economics
Oligopsony
A market with many sellers but only a few buyers who dominate purchasing, influencing pricing and contract terms.
Oligopsony can lead to lower prices for suppliers and concentrated market power. Buyers’ decisions heavily impact production incentives and resource allocation.
Like a small group of big fish feeding on many small fish — the buyers set the rules.
Real world: A handful of major brands buying cocoa from thousands of small farmers.
💡 Oligopsony occurs when few buyers control the market, often affecting pricing and supply.