What does monopsonistic mean?
Monopsonistic refers to a situation where a single buyer has significant market power, often resulting in the ability to dictate prices and terms to its suppliers. This can be seen in various industries, including labor markets, where a single employer may have a monopsonistic position. The term is often used in economic and business contexts to describe a situation where competition is stifled. Monopsonistic practices can have significant consequences, including reduced innovation and lower quality goods and services. Understanding monopsonistic is essential for businesses and policymakers seeking to promote competition and fair market practices.
adjectiveHaving or exercising monopsony power; being the only buyer of a particular good or service.
- Having or exercising monopsony power; being the only buyer of a particular good or service.
"The company's monopsonistic position in the market allowed it to dictate prices and terms to its suppliers."
"The company's monopsonistic position in the market allowed it to dictate prices and terms to its suppliers."
"The government's antitrust laws aimed to prevent monopsonistic practices that stifled competition."
The plural form monopsonistics is used to describe multiple buyers with monopsonistic power.
"The government's antitrust laws aimed to prevent monopsonistic practices that stifled competition in multiple industries."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of monopsonistic
The term monopsonistic is derived from the word monopsony, which refers to a market situation where a single buyer has significant market power. The word monopsony is itself derived from the Greek words 'monos,' meaning 'alone,' and 'ponos,' meaning 'labor' or 'work.' The term monopsonistic has been in use since the early 20th century, initially in economic and business contexts.
Usage notes
Monopsonistic is often used in economic and business contexts to describe a situation where a single buyer has significant market power. It can also be used to describe a situation where a single buyer is able to dictate terms to its suppliers.