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 ?
In days of old, the co-op was the answer to the dairyman's monopsony problem.
food preparation and serving, sales, administrative support, transportation, and material moving) look fairly competitive, economists such as Alan Manning developed models that argued instead that all employment situations have an element of monopsony.
Thus, the use of the monopsony model to object to the denigration of minimum wage laws is inappropriate.
Figure 1 contains all of the important short-run solutions for the model of a nondiscriminatory monopsony: if the monopsony is not yet regulated by the introduction of minimum wages, the monopsonist will, equating marginal costs of procuring labour MC(L) and labour demand [L.
com/article/ 119769/amazons-monopoly-must-be-broken-radical-plan-tech-giant; Paul Krugman, Amazon's Monopsony is Not O.
The field hearings looked at monopsony power-the concentration of agribusiness conglomerates, like Tyson, ratcheting down the rates they pay farmers for meat and poultry.
Trucking is not the only industry where monopsony prevails.
In markets without provider market power, the reduction in prices associated with insurer concentration may lead to a monopsony outcome (Bates and Santerre 2008).
Comcast will not possess monopsony power as a result of the Time Warner Cable acquisition," Comcast spokeswoman, D'Arcy Rudnay, told the paper.
6) Among the topics discussed were state liberty to pass and enforce antitrust laws, the issues of monopsony in antitrust law, the application of biological and evolutionary theory in antitrust, and a conservative economic case for increased antitrust enforcement.