monopsony


mo·nop·so·ny

noun \mə-ˈnäp-sə-nē\
plural mo·nop·so·nies

Definition of MONOPSONY

:  an oligopsony limited to one buyer
mo·nop·so·nis·tic \-ˌnäp-sə-ˈnis-tik\ adjective

Origin of MONOPSONY

mon- + -opsony (as in oligopsony)
First Known Use: 1933

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

monopsony

noun    (Concise Encyclopedia)

In economic theory, market situation in which there is only one buyer. An example of pure monopsony is a firm that is the only buyer of labour in an isolated town; such a firm would be able to pay lower wages to its employees than it would if other firms were present. Though cases of pure monopsony are rare, monopsonistic elements are found wherever there are many sellers and few purchasers.

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