Duopsony

/djuːˈɒpsəni/ noun

Definition

A market structure where exactly two large buyers control the purchase of goods from many sellers.

Etymology

From duo- (Latin 'two') + -opsony (from Greek opsōnia meaning 'purchase of provisions'). The term is the inverse of duopoly, emphasizing buyer concentration rather than seller concentration.

Kelly Says

If you're a small chicken farmer, you might be selling to just two massive food processors who set the price take-it-or-leave-it, which is a duopsony and why farmers often feel squeezed even when everyone says competition is healthy.

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