What is oligopons?

Oligopons is a situation where there are several large buyers and perhaps many retailers. In this case, the situation is perverted from Oligopol, where there are several retailers and many buyers. In cases where there is oligopons, there is a potential for the buyers to dictate market prices and other conditions by the seller, because the sellers must find an outlet for their product.

One example of Oligopson is a product known as cocoa. Although there are many products that use cocoa, there are few main crops. These buyers can dictate to cocoa growers what price they will pay for this product because there are very few other opportunities to sell the product outside these main buyers. Thus, the manufacturer's life depends on the sale of the product.

In situations where there is oligopons, many things can happen. The first is that for multiple producers or sellers of the same production, it is likely to be discouraged to get into business, especially if the buyer is considered to be usedThe situation. Secondly, it can help reduce prices for consumers because these buyers buy in bulk and have more control over the terms of purchase.

Unlike Oligopol, there may also be a potential for new buyers from time to time. In fact, if the conditions become favorable to buyers, new companies can be created to use these conditions. Therefore, Oligopons may not take too long, even after it is created if the conditions are mature for exploitation. In such situations, Oligopons may have the potential to support even more competition among buyers as others get to the market.

In general, however, there are some obstacles to new buyers in Oligopson. A purchased and sold product may require special processing and knowledge when moving from a raw pad to a finished product. This may be one of the reasons why there is no bigger bend in the first placeAdna buyers. New buyers may also find that manufacturers or sellers have existing contracts with established buyers and cannot sell them according to the terms of these contracts.

Unlike oligopols or monopolies, oligopon may be slightly harder to regulate, as the government cannot report individuals or society in most cases. If there is a problem with antimonope, such as contracts prohibiting sellers to look for other buyers, it can be a way of negotiations that the government can do. The government can also offer sellers a certain price or regulatory protection if the conditions threaten their livelihood.