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Tuesday, January 15, 2013

Duopoly & Duopsony



Duopoly
A form of imperfect competition where there are only two producers of a commodity. Such a situation can be given to cut-throat competition of a particularly irrelevant type, and to prevent both parties being ruined by it, they may agree to share the market, perhaps on a territorial basis, eachagreeing not to compete against the other in its share of the market.

Duopsony
Refers to a market situation in which there are only two buyers of a particular goods/service.

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