Sunday, October 22, 2006

Word of the week


The practice of using the market dominance of your cartel to force suppliers to lower prices. As seen by 5 supermarkets in the UK who control over 60% of the total food market.

A monopoly is one company supplying goods.

An oligopoly is a cartel of companies supplying goods.

An oligopsony is a cartel of companies buying goods: their practices are oligopsonistic.

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