The reverse of a monopoly, it is an industry in which there are many willing sellers but only one buyer. The buyer can therefore set each seller against the others and obtain supplies at the lowest possible price. By being able to obtain raw materials at an unrealistically low price the buyer may in certain circumstances (e.g. competing in a world market) be able to sell his end products at a price which will produce an excess profit. The supposition behind this is that foreign competitors will not share the buyer's advantages in purchasing cheaply.
|Reference: The Penguin Business Dictionary , 3rd edt.|