Legal Writing

Oligarchy + Monopoly ? Oligopoly

By Maeve Maddox

I’ve long been aware of the words oligarchy and monopoly, but I’ve only just discovered the word oligopoly.

The word oligarchy describes a type of government:

government by the few. from oligoi “few, small, little” plus arkhein “to rule.”

The word monopoly describes a type of market paradigm:

exclusive control of a commodity or trade, from monos- “single, alone + polein “to sell.

The word oligopoly, like monopoly, is a term used in economics:

oligopoly [(?l'?-g?p'?-l?] - a market situation in which each of a limited number of producers is strong enough to influence the market but not strong enough to disregard the reaction of his competitors

Here it is in some headlines:

Nonlinear pricing in an oligopoly market: the case of specialty coffee–RAND Journal of Economics

‘Market Economy’ or Oligopoly-Finance Capitalism? –Monthly Review, Senegal, Africa

An oligopoly model of commercial fishing–Seoul Journal of Economics

Oracle president backpedals on ‘oligopoly’ report –CNET News

There’s also a word for a market situation in which two competing sellers hold the controlling power of determining the amount and price of a product or service offered to a large number of buyers: duopoly.

Monopoly, duopoly and oligopoly, which refer to the control exercised by sellers, have these corresponding forms to describe the role of buyers:

monopsony - a market situation in which there is a single buyer for a given product or service from a large number of sellers

duopsony a market situation in which two rival buyers hold the controlling power of determining the demand for a product or service from a large number of sellers

oligopsony - a market situation in which each of a limited number of buyers is strong enough to influence the market but not strong enough to ignore the reaction to such influence by his competitors

The suffix -opsony in these words derives from Greek opsonia, “purchase of victuals, catering.”

I don’t know where you’ll find a use for these words, but I think they’re cool.

Oligarchy + Monopoly ? Oligopoly

Full post as published by Daily Writing Tips on June 11, 2009 (boomark / email).