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An oligopsony is a market characterised by a small number of consumers for a product or a service. It allows the buyers to exert enormous and often abusive power over the sellers. A good example is that of the fast food industry in the United States. A small number of huge buyers (McDonalds, Burger King, KFC and so on) virtually control the American meat market. Hence, they are able to dictate to the thousands of farmers their own terms when it comes to price, animal welfare conditions and labour standards. This power can be used for the promotion of a greater good; however it is often simply used to increase the profit margins of the companies.
See also Monopsony.
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