[muh-nop-suh-nee] 
| the market condition that exists when there is one buyer. |
| mo·nop·so·ny (mə-nŏp'sə-nē) n. pl. mo·nop·so·nies A market situation in which the product or service of several sellers is sought by only one buyer. [mon(o)- + Greek opsōniā, purchase of food; see duopsony.] mo·nop'so·nist n., mo·nop'so·nis'tic adj. |
Monopsony
A market similar to a monopoly except that a large buyer not seller controls a large proportion of the market and drives the prices down. Sometimes referred to as the buyer's monopoly.
Investopedia Commentary
People have accused Ernest and Julio Gallo (the big wine makers) of being a monopsony. They had such power buying grapes from growers, that sellers had no choice but to agree to their terms.
Related Links
Economics Basics Tutorial
See also: Monopoly, Oligopoly, Oligopsony
monopsony
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