Oligopsony Law and Legal Definition
Oligopsony is a market condition in which purchasers will be very few and the actions of any one of them can materially affect price and the costs that competitors must pay. In other words, it is the control or domination by a few large sellers creating high prices and low output. An example of oligopsony is the U.S. fast food industry, in which a small number of large buyers such as McDonald's, Burger King, and Wendy's controls the U.S. meat market. Such control allows them to dictate the price they pay to farmers for meat and to influence animal welfare conditions and labor standards.