Monopsonistic competition

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In economics, monopsonistic competition describes a demand-side market structure characterized by a relatively large number of buyers with similar (though not identical) tastes.

The supply-side equivalent of monopsonistic competition is monopolistic competition, in which a market is dominated by a relatively large number of sellers who produce differentiated products. Firms who operate in a monopolistically competitive way in an output market tend to operate in a monopsonistically competitive way in input or factor markets.