10 Examples of Monopsony and Oligopsony

Monopsony and Oligopsony

The monopsony and the oligopsony are economic market structures (context where the exchange of goods Y services between individuals) that occur when there is imperfect competition within the market.

Imperfect competition occurs when competition is not naturally regulated supply and demand that determines the prices of the products. In monopsony and oligopsony, prices are set by the buyer (s) (as opposed to monopoly Y oligopoly that prices are set by sellers).

Characteristics of monopsony

Oligopsony characteristics

Examples of monopsony

1. Public work.
2. Heavy weapons industry.
3. Special uniforms for firefighters.

Examples of oligopsony

1. Planes
2. Submarines
3. Bulletproof vests
4. Manufacturers of auto parts.
5. Large supermarkets that buy from small producers.
6. In tobacco production, there are many producers but few firms that buy the product.
7. In cocoa production, there are many producers but few firms that buy the product.