1. a market situation in which there is only one buyer for a particular good or service
Usage: economics

Examples

• The government created a monopsony when it became the sole purchaser of military aircraft.
• In some rural areas, a single large employer creates a monopsony for local workers.
• The company’s monopsony power allowed it to dictate prices to suppliers.
• Economists study monopsony markets to understand buyer concentration effects.
• A monopsony can lead to lower prices paid to sellers than in competitive markets.
• The healthcare system sometimes exhibits monopsony characteristics with insurance companies.