Monopsony

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Dictionary Says

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 Says

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.

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