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 ?
(283) So an exercise of monopsony power involves suppression of an input, just as an exercise of monopoly power involves suppression of output.
Lower input prices--including lower input prices achieved through increased classical monopsony power or bargaining leverage--can benefit those who purchase from the merged parties if the savings are passed through to purchasers.
(22.) As 1 noted earlier, in cases challenging the exercise of monopsony power, the fundamental goal is symmetric: preserving competition in order to protect small, powerless suppliers.
lowering or eliminating concerns about monopsony power of intermediary
These firms enjoy significant monopsony power and are notorious for exercising it.
Moreover, some may argue that fee reductions associated with insurer consolidation reflect monopsony power. Understanding the relationship between price and quantity across areas can shed light on that discussion.
Medicare is designed to use monopsony power to exert cost control.
live cattle producers are defenseless against the monopsony power exercised by the beef packers to shift ever increasing volumes of cattle from the cash market to one or more of the beef packers' captive supply procurement options.
We find that higher wages attract more able applicants as measured by their IQ, personality, and proclivity towards public sector work - ie, we find no evidence of adverse selection effects on motivation; higher wage offers also increased acceptance rates, implying a labour supply elasticity of around 2 and some degree of monopsony power.