Monopsony

Quick meaning: Monopsony is a noun meaning (economics) A market situation in which there is only one buyer for a product.

Meaning

(economics) A market situation in which there is only one buyer for a product.

More Meanings

1. (economics) A buyer with disproportionate power.

Example Sentences

Network Rail is a monopsony (the sole buyer in a particular market) and must be careful not to exploit that position.

The result is different when the resource buyer is a monopsony. The monopsony firm is a single buyer, and therefore it faces the market supply curve.

If the takeover is approved, Comcast would control 20 of the top 25 cable markets,[…]. Antitrust officials will need to consider Comcast’s status as a monopsony (a buyer with disproportionate power), when it comes to negotiations with programmers, whose channels it pays to carry.

For purposes of evaluating monopsony cases from the standpoint of economic efficiency, it makes sense to adopt a "purpose"-oriented classification system. After all, all monopsony cases can be reduced to either a unilateral or collusive use of buying power in order to promote the interests of the buyer.

Word Forms

• monopsonies

Synonyms for monopsony

Depending on context, synonyms include monopsonist.

Antonyms for monopsony

Common opposites include monopoly.

Related Words

Related dictionary entries include polyopsony, oligopsony, duopsony, oligopoly, duopoly, monopoly.

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