Monopsony - Meaning, Definition & English Examples
A monopsony is a market structure where there is only one buyer for a product or service, giving them significant control over prices and terms. It contrasts with monopoly, where there is only one seller.
Definition:
A market structure with only one buyer controlling demand for goods or services.
Synonyms:
buyer's monopoly, single-buyer market, oligopsony
Part of Speech:
noun
Antonyms:
perfect competition, polypoly
Common Collocations:
monopsony power, labor monopsony, monopsony employer
Derivatives:
monopsonistic, monopsonist
Usage Tips:
Use "monopsony" to describe markets dominated by a single buyer, often in labor or resource contexts.
Common Phrases:
monopsony in action, facing a monopsony, breaking the monopsony
Etymology:
From Greek "monos" (single) + "opsonia" (purchase), coined in economic theory.
Examples:
- 1. The factory faced a monopsony as it was the only buyer of local wool.
- 2. A monopsony can suppress wages when one employer dominates the job market.
- 3. Farmers struggle when a monopsony controls crop prices unfairly.
- 4. Governments sometimes regulate industries to prevent harmful monopsonies from forming.