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Monopsony theory was developed by economist Joan Robinson in her book The Economics of Imperfect Competition (1933). [1] Economists use the term "monopsony power" in a manner similar to "monopoly power", as a shorthand reference for a scenario in which there is one dominant power in the buying relationship, so that power is able to set prices ...
Book V: Price Discrimination - This book explores the practice of price discrimination, where a single firm charges different prices for the same commodity. It discusses the concept of price discrimination and raises reflections on its desirability. Book VI: Monopsony - This book shifts the focus to the perspective of an individual buyer.
In the first half of the book, Giblin and Doctorow argue that companies including Amazon, Audible, Spotify, Live Nation and Google (via control of ad markets and via YouTube), have created monopsony markets where they are functionally the only buyers in creative labour markets. This gives them the power to extract more value from creative ...
A monopsony is a situation in which a single buyer dominates the market. In this situation, a firm sets the market price it will pay for the factor rather than taking it as market-determined, and the amount of the factor to purchase is chosen at the same time subject to the constraint that the price-and-quantity combination is a point on the ...
Monopsony, when there is only a single buyer in a market. Discussion of monopsony power in the labor literature largely focused on the pure monopsony model in which a single firm comprised the entirety of demand for labor in a market (e.g., company town). [12]
A bilateral monopoly is a market structure consisting of both a monopoly (a single seller) and a monopsony (a single buyer). [1]Bilateral monopoly is a market structure that involves a single supplier and a single buyer, combining monopoly power on the selling side (i.e., single seller) and monopsony power on the buying side (i.e., single buyer).
Market power is the ability to affect the terms and conditions of exchange so that the price of a product is set by a single company (price is not imposed by the market as in perfect competition). [41] [42] Although a monopoly's market power is great it is still limited by the demand side of the market. A monopoly has a negatively sloped demand ...
In 1933, her book The Economics of Imperfect Competition, Robinson coined the term "monopsony", which is used to describe the buyer converse of a seller monopoly. Monopsony is commonly applied to buyers of labour, where the employer has wage setting power that allows it to exercise Pigouvian exploitation [ 13 ] and pay workers less than their ...