The profit function of the monopsonistic
entrepreneur is then given by
Using data on average salaries in Kentucky for the 1989 1990 school year and a variety of specifications, Borland and Howsen (1992, 1993, 1996) estimate that the difference in average salaries between perfectly competitive and perfectly monopsonistic
markets was less than $700 per year.
The article is presented as follows: a review of monopsonistic
exploitation, followed by a discussion of antitrust damages, an empirical example in Major League Baseball, the problem with damage estimation, and then some concluding remarks.
The model of monopsonistic
discrimination was developed by Robinson (1933) to describe a labor market in which two groups of equally productive workers (men and women) are paid different wages because they differ in their elasticities of labor supply.
Marginal players could not risk the strategy, for fear of not getting their contract renewed with the monopsonistic
The Medicare end-stage renal disease (ESRD) program, as a virtually monopsonistic
buyer of ESRD-related services, offers an example of this phenomenon (Farley 1994).
Although Grootaert and Patrinos's discussion of the new strategy for eliminating child labor (Chapter 7) is both thorough and engaging, the underlying assumption that child labor exists due to inadequate educational systems, monopsonistic
labor markets, poverty, and "perverse incentives that create a demand for child labor" (p.
The term 'Pigovian exploitation', for example, is utilised to describe an amalgam composed of Pigou's definition of exploitation and Robinson's discussion of the distinction between monopolistic exploitation and monopsonistic
It was argued earlier that the monopsonistic
equilibrium output, such as [E.
this variation in quality would be supplied by competing educational enterprises, which would break down the oligopsonistic and monopsonistic
structures by which teachers' pay has been restrained in the past - though weakened trades unions might offset this.
So one way of testing the implications of the dynamic monopsony model is to see whether the size-wage relationship will be stronger for segments of the labour market which are more monopsonistic
The fourth factor promoting departures from traditional regulation has been the emergence of large customers seeking to exercise monopsonistic