monopsony(redirected from Monopsonistic competition)
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Related to Monopsonistic competition: Monopolistic competition
The existence of only one buyer in a market, forcing sellers to accept a lower price than the socially optimal price.
Describing a market for a good or service with several potential sellers and only one potential buyer. Low prices mark the monopsonies because the sellers must compete for the buyer, perhaps to below sustainable level. One may thing of a monopsony as the polar opposite of a monopoly. See also: Buyer's Market.
Of, relating to, or being a market in which there is a single buyer of a particular good or service. Businesses selling in a market characterized by monopsony are likely to suffer below-average profitability because of the lack of alternative outlets for their products. Compare monopoly.