GGR252H5 Chapter Notes -Oligopsony, Oligopoly, Walmart
Document Summary
: the impact of industry consolidation on competition, innovation, and consumer choice" journal of consumer policy, 31(4), 497-499) Many mergers take place and industries tend to consolidate. Companies are always striving to be number 1 in the market. Oligopsonies can be seen as middlemen, being in the position to squeeze the suppliers, where one can think of wal-mart, which, as a buyer, demands low prices from its sellers in order to offer low prices to consumers. Oligonomies are oligopolies in one direction and oligopsonies in the other. Such as major book publishers, being an oligopsony to authors and an oligopoly to readers. Motivations for growth include: namely organic growth, (meaning companies should continue doing what they are good at), vertical expansion, (for instance, can involve the buying out of layers in the same industry, such as coca-cola and. Mergers often occur due to fear and anxiety for other companies to consolidate and the lessening of market power,
