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.


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.

  1. Oligopsony

    Similar to an oligopoly (few sellers), this is a market in which ...
  2. Monopoly

    A situation in which a single company or group owns all or nearly ...
  3. Bilateral Monopoly

    A market that has only one supplier and one buyer. The one supplier ...
  4. Duopsony

    An economic condition, similar to a duopoly, in which there are ...
  5. Oligopoly

    A situation in which a particular market is controlled by a small ...
  6. Elastic

    A situation in which the supply and demand for a good or service ...
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