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 ?
As a consequence, profit maximization of the monopsonist means
Lastly, trends in the digital content distribution space give global salience to the third effect of diminished revenue streams--the potential for exploitation by monopsonist intermediaries.
As in Section A, this section assumes that the buyer conspiracy includes all buyers in the market and that they act jointly as a monopsonist.
Proposition 2: The relationship between power of actor j over actor i (Pj) and dependence of actor j on actor i (Dj) will be positively moderated by a monopsonist demand structure such that the negative slope of the curve at increasing levels of Dj will be weakened.
Moreover, when a firm meets a worker for the second time, the firm knows that the other bidder believes itself to be a monopsonist.
Between 1914 and 1937, the Yankees were monopsonists in the MLB labor market, and as theory predicts, they exploited their players.
Instead, a monopsonist who sells into a competitive market will charge consumers the same price as a nonmonopsonist, but will supply a lower amount of the good.
47) At the other end of the continuum are situations where the state is a monopsonist buyer, such as when it buys highly specialized military equipment.
2) A monopsonist faces, or at least perceives, an upward-sloping supply of labor.
Monopsony in the labour market does not always require an agreement between numerous employers; a single employer could act as a monopsonist if the movements of workers are prevented by ignorance and costs.
For example, for some workers in an isolated company town that was created by and is dominated by one employer, that employer is a monopsonist for some kinds of employment.
It concludes that the Service is essentially a monopsonist in this market, since almost no one else will pay for such information.