oligopsony
/ˌɑːlɪˈɡɑːpsəni/
noun
- A market situation in which there are only a few buyers for a product or service, giving those buyers significant control over prices and terms.
- In an oligopsony, a small number of large grocery chains can dictate low prices to farmers.
- When a few big companies dominate the purchase of raw materials, it creates an oligopsony that hurts small suppliers.
- The labor market for professional athletes is often an oligopsony, with only a handful of major teams hiring players.