monopsony Definition
a market situation in which there is only one buyer for a particular product or service, giving the buyer substantial control over price and quantity.
Using monopsony: Examples
Take a moment to familiarize yourself with how "monopsony" can be used in various situations through the following examples!
Example
The company had a monopsony on the local labor market, allowing it to set wages as low as it wanted.
Example
The government's procurement policies created a monopsony in the market for medical supplies.
Example
The small town's grocery store had a monopsony on fresh produce, leading to high prices for consumers.
monopsony Synonyms and Antonyms
Synonyms for monopsony
- buyer's monopoly
- purchaser's monopoly
Phrases with monopsony
the ability of a single buyer to exert significant influence over the price and quantity of goods or services in a market
Example
The large corporation's monopsony power allowed it to negotiate lower prices with suppliers.
a situation where there is only one employer in a particular labor market, giving the employer significant control over wages and working conditions
Example
The mining company's labor monopsony in the small town meant that workers had few options for employment and were forced to accept low wages.
the practice of using monopsony power to pay workers less than the value of their labor
Example
The company's monopsony exploitation of workers led to protests and strikes.
Origins of monopsony
from Greek 'monos' meaning 'single' + 'opsōnia' meaning 'purchase'
Summary: monopsony in Brief
'Monopsony' [məˈnɒpsəni] refers to a market situation where there is only one buyer for a particular product or service, giving the buyer substantial control over price and quantity. Examples include a company having a monopsony on the local labor market, or a small town's grocery store having a monopsony on fresh produce. Phrases like 'monopsony power' and 'labor monopsony' describe the influence a single buyer can have over a market.
