Bhaskar et al., Oligopsony and Monopsonistic
Competition in Labor Markets, 16 J.
The Philippine economy, like many others, is best described as a collection of firms in different types of labor market, ranging from highly competitive to highly monopsonistic
. Thus, when evaluating the wisdom of a legal minimum wage, whether for a specific industry or for the entire country, we need to rely, first of all, on what the evidence tells us.
If the labor market is aggressive, a rise in the minimum wage diminishes employment of employees antecedently earning the minimum, but if the labor market is monopsonistic
, slight rises in the minimum wage could advance both employment and earnings of concerned employees.
Similarly, making government the monopsonistic
buyer of organs may cause us to regard organs as a special good and not a pure market or use good.
practices by a central body like the state in all likelihood contribute to lower costs.
Some of these rents come from the monopsonistic
labor market created by the cartel.
Favourable prices are negotiated with manufacturers by leveraging on monopsonistic
buying power to set prices below more liberalised prices, or alternatively if competitive bids are used.
The dependence on mainly foreign tourist agents and the monopsonistic
power of multinational enterprises (MNEs) force Greek small-medium enterprises (SMEs)--which constitute the majority of the Greek hospitality sector--to operate on very thin profit margins (Papageorgiou, 2008).
Unlike civilian government agencies, the military customer often enjoys a monopsonistic
(one buyer) position in dealing with contractors.
It would have to be a radical departure from the monopsonistic
Apollo model, in which the government is the only customer for a single major system, with no redundancy or backup.
Where there are monopsonistic
labour markets, wages will be below the competitive equilibrium.
In this framework, fishers act as upstream monopolist (oligopolists), selling whole fish to downstream monopsonistic
(oligopsonistic) fish processors.