monopsony

American  

[muh-nop-suh-nee] / məˈnɒp sə ni /

noun

plural

monopsonies

1. the market condition that exists when there is one buyer.

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monopsony British  

/ məˈnɒpsənɪ /

noun

1. a situation in which the entire market demand for a product or service consists of only one buyer

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Other Word Forms

• monopsonist noun
• monopsonistic adjective

Etymology

Origin of monopsony

First recorded in 1930–35; mon- + Greek opsōnía “shopping, purchase of provisions”

Explanation

In economics, a monopsony is where there are many sellers and one buyer. It’s the opposite of a monopoly, which is where there are many buyers and one seller. In fact, a monopsony is sometimes called “a buyer’s monopoly.” The term monopsony was first used in print by economist Joan Robinson in 1933, from a combination of the Greek roots mónos, "single," and opsōnía, "purchase." A monopsony is not a healthy market because it often means a single employer (buyer) has a lot of available workers (sellers). An example of a monopsony is a mining town with only one employer, a coal company that has the power to pay workers low wages because there's no competition.

Example Sentences

Dube was one of the authors on a major 2019 paper that showed that higher minimum wages didn’t dent employment, and believes that monopsony helps explain why.

From The Wall Street Journal • Mar. 19, 2026

A monopsony is a market situation in which there is only one buyer in a market.

From Seattle Times • Mar. 13, 2023

While less common, monopsony cases aren't new to antitrust.

From Salon • Nov. 26, 2022

The trial was not about whether the deal would create a monopoly, but about whether it would lead to a monopsony, or too much control over suppliers — in this case, top-selling writers.

From New York Times • Nov. 1, 2022

If you sell salami, and there is only one sandwich shop around to buy it, that’s a monopsony.

From Washington Post • Sep. 7, 2022