monopsony


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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 ?
These firms enjoy significant monopsony power and are notorious for exercising it.
Do Health Insurers Possess Monopsony Power in the Hospital Services Industry?
A monopsony exists when there is only one buyer of a well-specified good or service.
Medicare generated monopsony power, undermining the market power of medical professionals.
1995) (explaining that "[a]thletic prowess is, of course, a unique and highly specialized resource, of precisely the genre vulnerable to monopsony manipulation" and if sports "team owners join together to suppress the price of athletic services through monopsony practices, most athletes will not be able to switch profitably to other lines of work," thus creating a "labor market for professional athletes' services .
Low prices will prevail because of the monopsony, but this will not stop catches because traditional fisheries such as shrimp, crab, and jumbo squid are depleting.
When a monopoly confronts a monopsony in the market place, the outcome--as standard labor theory teaches--can only be decided via bargaining.
Defense is a strange business, indeed, The most important structural feature, even beyond the fact that the supply side has been almost fully privatized, is that it is a monopsony.
The Canadian Parliament has approved legislation that would terminate the Canadian Wheat Board's monopoly and monopsony powers, and the governor-general granted royal assent shortly thereafter, the final step to the measure becoming law.
A potentially important possible offset that has received attention in the literature is that of monopsony (Manning 2003; Bhaskar, Manning, and To 2002).
No-player is a dummy variable indicating that no industry player is present in the mouza due to which the traditional milk collecting agent (dodhi) enjoys the monopsony power in buying farmer milk.
Most importantly, and perhaps controversially, the single-entity structure gives MLS monopsony power over the U.