MiloKing at 22:50, 7 July 2016

2016-07-07T22:50:17Z

← Older revision		Revision as of 22:50, 7 July 2016
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	The concept of monopsony has parallels with [[Monopoly_pricing\|monopoly]]. The former has only one ''buyer'' in a competitively-provided market, while the latter has only one ''seller'' in a market where buyers compete. Both involve forms of [[Market_power\|market power]], since a single market participant has influence over the price in the market.		The concept of monopsony has parallels with [[Monopoly_pricing\|monopoly]]. The former has only one ''buyer'' in a competitively-provided market, while the latter has only one ''seller'' in a market where buyers compete. Both involve forms of [[Market_power\|market power]], since a single market participant has influence over the price in the market.

	One interesting aspect of monopsonistic markets is that [[Price_floor\|price floors]] may not affect such markets in the same ways as they affect perfectly competitive markets. In particular, it is possible in a monopsonistic market for price floors to actually ''raise'' the quantity of a good sold and ''increase'' social surplus.		One interesting aspect of monopsonistic markets is that [[Price_floor\|price floors]] may not affect such markets in the same ways as they affect perfectly competitive markets. In particular, [[Price_floor#Binding_price_floors_set_below_the_point_at_which_marginal_revenue_cost_equals_willingness_to_pay_increase_quantity_sold\|it is possible]] in a monopsonistic market for price floors to actually ''raise'' the quantity of a good sold and ''increase'' social surplus.

MiloKing: Created page with "A '''monopsony''' is a type of market where there is one buyer and many sellers who compete (in perfect competition) to serve that buyer. A market can be an '..."

2016-07-07T22:49:02Z

Created page with "A '''monopsony''' is a type of market where there is one buyer and many sellers who compete (in perfect competition) to serve that buyer. A market can be an '..."

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A '''monopsony''' is a type of market where there is one buyer and many sellers who compete (in [[Market price|perfect competition]]) to serve that buyer. A market can be an '''oligopsony''' if there are relatively few buyers and many sellers who compete to serve them. A market of the former type can be described as '''monopsonistic''', where the single buyer is called the '''monopsonist'''. A market of the latter type can be described as '''oligopsonistic''', where the few buyers are called '''oligopsonists'''. In practice, oligopsonies are sometimes referred to with the same language used to describe monopsonies.

The concept of monopsony has parallels with [[Monopoly_pricing|monopoly]]. The former has only one ''buyer'' in a competitively-provided market, while the latter has only one ''seller'' in a market where buyers compete. Both involve forms of [[Market_power|market power]], since a single market participant has influence over the price in the market.

One interesting aspect of monopsonistic markets is that [[Price_floor|price floors]] may not affect such markets in the same ways as they affect perfectly competitive markets. In particular, it is possible in a monopsonistic market for price floors to actually ''raise'' the quantity of a good sold and ''increase'' social surplus.

Monopsony - Revision history

MiloKing at 22:50, 7 July 2016

MiloKing: Created page with "A '''monopsony''' is a type of market where there is one buyer and many sellers who compete (in perfect competition) to serve that buyer. A market can be an '..."