DUOPSONY Meaning and
Definition
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Duopsony is an economic term that refers to a market condition in which there are only two dominant buyers or purchasers for a particular product or service, while there are many sellers or providers. The word itself is derived from the combination of "duo" meaning two and "opsony" meaning buyer.
In a duopsonistic market, the two major buyers wield substantial bargaining power, which enables them to influence the price, quantity, and terms of trade. They can exploit their market power and demand favorable conditions from the numerous sellers, as they have limited alternatives when it comes to selling their goods or services. The sellers are often price takers, meaning they have little ability to negotiate or influence the terms of the trade.
Duopsony situations may arise due to various reasons, such as economies of scale, exclusive contracts, or barriers to entry. Some examples include dominant supermarket chains that purchase goods from multiple suppliers, or healthcare providers that have significant control over the purchase of medical equipment and supplies.
This market structure raises concerns about fairness, competition, and potential exploitation of suppliers. It can lead to reduced profitability for sellers, limited innovation and quality improvement, and less diversity in the market. Therefore, governments and regulatory authorities may monitor and intervene in duopsonistic markets to promote competition and protect the interests of all participants.
Common Misspellings for DUOPSONY
- suopsony
- xuopsony
- cuopsony
- fuopsony
- ruopsony
- euopsony
- dyopsony
- dhopsony
- djopsony
- diopsony
- d8opsony
- d7opsony
- duipsony
- dukpsony
- dulpsony
- duppsony
- du0psony
- du9psony
- duoosony
- duolsony
Etymology of DUOPSONY
The word "duopsony" is formed by combining two Greek roots: "duo" meaning "two" and "opsōnia" meaning "purchase" or "buying".
The term was coined in the field of economics to describe a market structure where there are only two major buyers and many sellers. It is the counterpart of "duopoly", which refers to a market structure with only two major sellers and many buyers. Both "duopsony" and "duopoly" are derived from the Greek roots "duo" + "pollein" (meaning "to sell" or "selling") or "polein" (meaning "to buy" or "buying").
Similar spelling words for DUOPSONY
