monopsony

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Related to Monopsony power: monopsonistic

Monopsony

The existence of only one buyer in a market, forcing sellers to accept a lower price than the socially optimal price.

Monopsony

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.

monopsony

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.

monopsony

a form of BUYER CONCENTRATION, that is, a MARKET situation in which a single buyer confronts many small suppliers. Monopsonists are often able to secure advantageous terms from suppliers in the form of BULK-BUYING price discounts and extended CREDIT terms. See MONOPOLY, BILATERAL MONOPOLY.
References in periodicals archive ?
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.