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 ?
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.
Monopsonistic 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.