What's the Difference Between a Monopsony and Oligopsony?

A monopsony consists of a market with a single buyer. When there are only a few buyers, the market is defined as an oligopsony. In general, when buyers have some influence over the price of their inputs they are said to have monopsony power.

What is an example of oligopsony?

The fast-food industry is a good example of an oligopsony. A small number of large buyers including McDonald's, Burger King, and Wendy's buys a huge amount of the meat produced by American ranchers. That gives the industry the ability to dictate the price they are willing to pay.

What is oligopoly and oligopsony?

It explains that oligopoly is a market structure in which there are only a few important sellers and oligopsony is one in which there are only a few important buyers.