An oligopsony is a market form in which the number of buyers is small while the number of sellers in theory could be large. This typically happens in market for inputs where a small number of firms are competing to obtain factors of production. It contrasts with an oligopoly, where there are many buyers but just a few sellers. An oligopsony is a form of imperfect competition. The terms monopoly (one seller), monopsony (one buyer), and bilateral monopoly have a similar relationship. One example o… (More on Oligopsony)