In economics, a monopsony (from Ancient Greek μόνος (mónos) "single" + ὀψωνία (opsōnía) "purchase") is a market structure in which only one buyer interacts with many would-be sellers of a particular product. In microeconomic theory of monopsony, a single entity is assumed to have market power over terms of offer to its sellers, as the only purchaser of a good or service, much in the same manner that a monopolist can influence the price for its buyers in a monopoly, in which only one seller faces many buyers.
From the Austrian perspective, a true, 100% monopsony has complete control over the labor market of its respective industry for particular class or classes of labor. This comes about from government interference in the market which imposes a single buyer of labor and outlaws the competition.
- This article uses content from the Wikipedia article on Monopsony under the terms of the CC-by-SA 3.0 license.