, a buyer with market power in its buying market reduces its purchases to infracompetitive levels, thereby reducing the supply.
If it is often noticed that a monopoly is a monopsony
or a monopsony
is a monopoly, this is rarely considered a necessity.
In addition to finding lower wages in monopsony
markets, the researchers also found that, over time, firms that dominate their labor markets were less likely to share productivity gains with employees.
(3) This result is consistent with (and reliant upon) the economically symmetric effects of monopoly in output markets and monopsony
in input markets.
They found that a combination of measurement error in the Card and Krueger telephone survey and the fact that the wages of many of the workers were already above both the new and old minimum wage accounted for Card and Krueger's findings, rather than a monopsony
power is generally frowned upon by the U.S.
a firm which offers below equilibrium wage rates will not per se have a shortage of labor, for if no other firms are available for workers to seek employment at, the only alternative for a worker taking a wage below his marginal revenue product is leisure time (9).
In this article, we first analyze the peculiarities of a non-discriminatory monopsony
with two variable factors of production, paying special attention to the budget constraint involved: the budget constraint of a monopsonistic firm is, because of the endogeneity of the wage rate, non-linear.
(Blau and Kahn, 2016) The effect of women's absence of substitute income sources and their restricted job options is to make them more vulnerable to the risk of monopsony
power (Ctefanescu-Mihaila, 2015; 2014a, b) than is the case for men.
(18) In those circumstances, however, when a buyer with monopsony
power forces those suppliers to disfavor the buyer's rivals, injuring the suppliers as well as the rivals, those sellers would deserve protection from the exercise of buyer power.
power--the ability of a single buyer to impact a would-be
Courts have on occasion held that abuses of monopsony
are antitrust violations.