This paper analyzes oligopsonistic price competition under a fixed input supply constraint. Firms simultaneously and noncooperatively choose input prices. A highest offer first allocation rule determines each firm\u27s share of the fixed supply. Under this rule, if a firm offers a particularly low price, then it may be shut out of the market. Moreover, low offer prices cannot be sustained in the market as a whole since firms have an incentive to outbid their rival(s) and increase individual market share. A pure strategy Nash equilibrium exists if the number of competing firms is sufficiently large. When this condition is satisfied, all equilibrium prices are near the firms\u27 marginal valuation of input: The market outcome is approximately Walrasian
