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 refusing DFA's motion to dismiss the case, the judge ruled that because the plaintiffs are clearly subject to DFA's monopsony power, they "may plausibly allege anti-trust injury.
The legislative history of the Sherman Act is clear that Congress intended to protect suppliers without market power--small, competitive suppliers--from monopsony power that was acquired or maintained without justification.
Employer exercise of monopsony power also depresses consumption.
Do Health Insurers Possess Monopsony Power in the Hospital Services Industry?
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.
Thus, there is no reason to believe that the merger, even if it exceeded the theoretical threshold for the exercise of monopsony power, would in fact lead to lower reimbursement rates," the FTC majority stated.
Most importantly, and perhaps controversially, the single-entity structure gives MLS monopsony power over the U.