Monopsony

A market form, characterised by a single dominant buyer in market.

There is one buyer and many sellers.

Because of their buying power, monopsonists are able to influence the price they pay compared with buyers in more competitive markets.

Examples include governments in the employment of civil servants, nurses, police and army officers.

See also

• Antitrust law
• Cartel
• Competition & Markets Authority
• Economies of scale
• Monopolistic competition
• Monopoly
• Natural monopoly
• Oligopoly
• Perfect competition
• Trust