A duopsony market is the opposite of a duopoly market because in this market there are only two buyers of a specific product.
The word duopsony is derived from the Greek word and is made up of two words, “duop” meaning “two” and “sony” meaning “buyer”. When there are only two buyers of a product in the market, it is called a duopsony market.
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Meaning
Duopsony is a market situation in which there are only two buyers and a large number of sellers of a specific product. All sellers sell products to only two buyers and the buyers have good knowledge about the products.
Features of duopsony market
The following are the features of duopsony market.
1. Only two buyers:
In this market there are only two buyers of a specific product, and the buyers have good knowledge about the products.
2. Large number of sellers:
In this market, a large number of sellers are available to sell products and all the sellers sell goods to only two buyers.
3. Substitute products
In this market, all the sellers sell the same type of products so there is a choice of products available.
4. Bargaining power:
Buyers have bargaining power in this market because there are only two buyers and a large number of sellers in this market.
5. Selling Cost:
Due to only two buyer and a large number of sellers, there is more competition among the sellers due to which the seller has to spend more on advertising and promotion, hence the selling cost is higher in this market.
