Employer exercise of monopsony power
also depresses consumption.
Do Health Insurers Possess Monopsony Power
in the Hospital Services Industry?
Medicare generated monopsony power
, undermining the market power of medical professionals.
While the labor of average players is generally exploited through a club's monopsony power
, due to the right to charge transfer fees, competition for superstars drives up the salaries of the best players.
On the other hand, there is greater spending variation in the private sector, suggesting the potential importance of monopsony power
in the public sector.
The model developed in this article shows that three elasticities--the inframarginal elasticity of supply, the participation elasticity, and the demand elasticity--are critical to the setting of a two-part price when the monopoly and the monopsony powers
of the aggregator are considered.
The owners have monopoly power over the broadcasting of professional football games and monopsony power
over the hiring of the best players.
High mobility costs, the monopsony power
of the university, or external openings restricted to the assistant level may explain this phenomenon.
On the one hand, unions may contribute to efficient workplace governance and correct the monopsony power
of employers in imperfect labor markets.
84) For example, as the Fifth Circuit has observed, a meatpacker who has monopsony power
in the upstream market for purchasing fed cattle and who also has "an oligopolist's position as a seller of processed beef' downstream, can "compound its monopoly profits by reducing its purchases of fed cattle, and thus its procurement costs, while also reducing its output in the processed beef market.
First, if the earlier underemployment resulted from monopsony power
, then it can be expected to have disappeared as other sectors offered increasingly viable and competetive employment opportunities.
The other issue is one antitrust officials call monopsony power
, where buyer power is aggregated to such an extent that it creates a concentration of power that otherwise would not exist.