The concept describes the special case of companies in a monopsony market. It outlines a number of strengths and weaknesses of a monopsony, offers advice on measuring the concept and uses case studies from across countries and industries to show the concept in practice.
A pure monopsony is a market where a company is the only consumer of a resource (i.e. a company that is the only employer). Since pure monopsony situations are rare, monopsony only occurs when a company is so large that its buying decisions affect the price of the resource or its employing decisions affect the market wage (Hall & Lieberman, 2007).
Monopsony Description *
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Monopsony References (4 of up to 20) *
- Baumol, W.J., Blinder, A.S. (2011), Economics: Principles and Policy, Cengage Learning.
- Brezina, I., Pekár, J., Čičková, Z. (2012) The Analysis of Concentration of Slovak Banking Sector, Strategic Management, 17(2), 45-50.
- Drabek, Z. (2001) Globalisation Under Threat, Edward Elgar Publishing, Cheltenham, UK.
- Gardiner, B., 2007. The Other $15 Billion Question: How Will Apple Spend Its Cash? Wired, 1 November. Available at: http://www.wired.com/techbiz/it/news/2007/11/apple_cash.
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