Legal Definitions - oligopsony

Definition: Oligopsony is a situation where a few large buyers or customers have control or domination over a market.

Example: The agricultural industry is an example of oligopsony, where a few large food processing companies have control over the prices paid to farmers for their crops.

Explanation: In an oligopsony market, the few large buyers or customers have the power to dictate the terms of trade, including the price paid for goods or services. In the agricultural industry example, the farmers have limited options to sell their crops, and the large food processing companies can offer lower prices, which the farmers have to accept to stay in business.