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 ?
Ross-Simmons Hardwood Lumber Co., in which the Court considered predatory purchasing by an alleged monopsonist. (43) The Court heavily emphasized the parallel nature of monopoly and monopsony conduct as an economic and--the Court concluded--legal matter.
As a consequence, profit maximization of the monopsonist means
These might be monopsonists that enjoy greater hiring leeway because of their size and market presence (Lanzona 2014).
(5) Since D is the only downstream producer, it is also a monopsonist buyer for U's good.
The government may still stand before the contractor as a monopsonist, as the only domestic buyer of heavy weapons, and the veto authority on arms exports.
(303) The effect of piracy reducing the number of available revenue streams is therefore doubly damaging to the music industry, whose income is tied to the whims of a single revenue-generating format that is controlled by a monopsonist. If music companies could diversify their revenue by effectively exploiting their copyrights in China--through monetized online downloads, subscription streaming, CD sales, and so on--they might be in a better position to weather fluctuations or downturns in the fortunes of the CRBT format.
monopsonist purchaser of public goods and costs increase, the result is
Now consider the effect if all buyers in the hypothetical participate in a buyer price-fixing conspiracy and act as a single monopsonist. This extreme case of a complete buyer conspiracy simplifies the economic analysis; however, even with less extensive conspiracies, the same basic outcome will result.
By that time the economy was encountering serious problems because cotton output was declining and the other major export, gas, went through pipelines to monopsonist buyers who did not pay their bills; in 1997-9 Turkmenistan cut off gas supplies to Ukraine in an attempt to enforce payment.
Furthermore, the monopsonist market structure plays a key role in increasing the power of the US government over its suppliers.
Off the equilibrium path, when a firm meets a worker for the second time, it knows that any other bidder involved in the auction believes itself to be a monopsonist. Therefore, the firm again finds it optimal to offer the worker's reservation wage.
What is of particular interest in this case is that the monopsonist employer does not decrease salaries as a player's MRP decreases with age.