monopsony

Thân thiện

Definition

Noun: 1. An economic market structure: A monopsony is a market condition in which there is only one major buyer for a particular good or service, but there are multiple sellers. This gives the single buyer significant power to control prices and terms.

Usage

• The term is used primarily in economics and business to describe and analyze specific labor markets, procurement scenarios, or resource markets.
• It describes the opposite of a monopoly, where there is one seller and many buyers.
• It is often discussed in the context of its effects, such as driving down prices paid to suppliers or wages paid to workers.

Examples

• Noun:
  • The company's dominance as the only major employer in the small town created a classic monopsony in the local labor market.
  • Economists argued that the government's role as the sole purchaser of the military equipment constituted a monopsony.

Advanced Usage

• "Monopsony power": Refers to the degree of control a single buyer has over the market price.
  • The large retailer used its monopsony power to demand lower prices from its suppliers.

Variants and Related Words

• Monopsonistic (adjective): Characteristic of or relating to a monopsony.
  • The market was highly monopsonistic, favoring the sole purchaser.

Synonyms

• Buyer's monopoly

Different Meanings

• This term has a specific, technical meaning in economics and does not have common alternative definitions in general usage.

Related Idioms/Phrases

• No common idioms exist for this specific technical term.

Học thuật

Noun

1. (economics) a market in which goods or services are offered by several sellers but there is only one buyer