Monopsony
Definition of 'Monopsony'A market similar to a monopoly except that a large buyer not seller controls a large proportion of the market and drives the prices down. Sometimes referred to as the buyer's monopoly. |
|
Investopedia explains 'Monopsony'People have accused Ernest and Julio Gallo (the big wine makers) of being a monopsony. They had such power buying grapes from growers, that sellers had no choice but to agree to their terms. |
Related Definitions
Articles Of Interest
-
Early Monopolies: Conquest And Corruption
This structure can be very effective, but it is also known for its abuse of power. -
A Practical Look At Microeconomics
Learn how individual decision-making turns the gears of our economy. -
Antitrust Defined
Check out the history and reasons behind antitrust laws, as well as the arguments over them. -
What Makes An M&A Deal Work?
Do you know why companies merge? Here we'll take a look at three successful company acquisitions and why they succeeded. -
Economics Basics
Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more! -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Great Company Or Growing Industry?
Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth. -
Prisoner's Dilemma
Learn more about this classic game theory scenario. -
Is Growth Always A Good Thing?
Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble. -
What Is "Chained CPI?"
Chained CPI is one of many ways to approximate the impact of rising or falling prices to consumers' pocketbooks.
Free Annual Reports