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 ?
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.
Alternatively, suppose the district is a monopsonist in the market for teachers.
If the Service were a profit-maximizing monopsonist, however, and could substitute other factors for tips from tax informants, and must pay a uniform price for such tips, then economic theory predicts that the Service would restrict its demand for tax tips to QM.
FTC B2B WORKSHOP (June 30, 2000), supra note 70, at 529 (comments of Rick Warren-Boulton) (unlike a monopsonist, who "reduces the prices he pays .
An example of a theoretical model in which the central planner is a monopsonist is provided by Roberts and Rodriguez (1997).
The monopsonist determines the quantity of labor to hire by setting the value of the marginal product equal to the marginal cost of labor, or
As well as the product market, issues of cartel-like behaviour arise in the labour market: the NZRFU could potentially act as a monopsonist in the job market for players.
As a result, a monopsonist like General Motors will be able to capture the larger share of the gains from trade with its specialized suppliers.
where a large number of farmers must deal with a monopsonist buyer or a monopolist seller, or where a large number of consumers face a monopolist retailer (see e.
However, when the buyer is a monopsonist as complex as the U.
A monopsonist and/or monopoly cartel could coordinate on any one of these three factors, fiercely compete with regard to the other two factors, and achieve the same profit-maximizing results as if they colluded on all three.