What do you call the market situation categorized as having few buyers and many sellers?

In a market characterized by few buyers and many sellers, the situation is referred to as "oligopsony." This term describes a market structure where a small number of buyers exert significant influence over sellers, which contrasts with an oligopoly, where a few sellers dominate the market. In an oligopsony, the concentrated power of buyers can negotiate lower prices and better terms, which can significantly affect the market dynamics and the strategies employed by sellers.

The focus on the buyer's side is crucial: since there are many sellers but only a few buyers, the competition among sellers intensifies as they strive to meet the needs and preferences of these limited buyers. This situation is particularly common in industries where large firms or organizations are the primary purchasers of goods or services, such as agriculture or natural resources. The term helps to understand the balance of power in market transactions and reflects the economic behavior of participants involved.