monopsony(redirected from monopsonist)
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Related to monopsonist: industrial union
The existence of only one buyer in a market, forcing sellers to accept a lower price than the socially optimal price.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
monopsonya 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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005