Monopoly, oligopoly and cartels are examples of market distortion, i.e. supply markets that do not result in free and open competition. Monopoly – a market with a single supplier – and monopsony – a market with a single buyer – are structures that distort the market. Oligopoly – a few large suppliers – and oligopsony – a few large buyers, are market structures with a high degree of concentrated power amongst a small number of participants. These participants exercise power to extract value from other market participants, resulting in higher prices and less productivity than would be the case in a free market structure. Cartels represent collusive market behaviour in favour of the participants and against the interests of the consumer. See also Market Analysis and Market Failure.« Back to Glossary Index
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.