What does monopsonist mean?
A monopsonist is a buyer or employer with enough purchasing power to face little effective competition from other buyers. Sellers or workers may consequently have few realistic alternatives and may have to accept the monopsonist's terms, including lower prices or wages. The term is especially used in economics, labour-market studies, and discussions of corporate purchasing power. A monopsonist is the buyer-side counterpart of a monopolist, who controls a market on the selling side. Although a single large employer can be a monopsonist in a particular labour market, the term does not necessarily imply that the employer monopolises an entire industry. In everyday use, “monopolist” is far more common, but the two words describe opposite sides of a market and should not be confused.
nounA buyer or employer with enough purchasing power to face little or no competition from alternative buyers. A monopsonist may therefore be able to impose terms on sellers or workers.
- A buyer or employer whose purchasing power substantially limits the alternatives available to sellers or workers.
"The hospital became the town's monopsonist and used its position to negotiate lower wages."
"Because several farms depended on the same processor, the processor acted as a monopsonist in the regional milk market."
"The report concluded that the largest supermarket chain had become a monopsonist in several rural markets."
Used when referring to multiple buyers or employers with monopsony power.
"Large firms may act as monopsonists in remote labour markets."
A monopolist sells with little competition; a monopsonist buys with little competition.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does monopsonist come from?
Monopsonist was formed within the vocabulary of economics from mono-, meaning “one” or “single,” and the Greek opsōn, meaning “buying” or “purchase.” Its development follows the earlier term monopsony, which denotes a market situation in which there is effectively only one purchaser. The suffix -ist forms a noun identifying the person or organisation possessing that power.
Related word forms
How monopsonist is actually used
This is a specialised term in economics and labour-market analysis. It is not a general synonym for monopolist: the distinction is between restricted competition among sellers and restricted competition among buyers.
Easily confused with monopsonist
A monopolist controls the supply or sale of a product, whereas a monopsonist controls or dominates the demand for goods or labour.