monopsony
/məˈnɑpsəni/
noun
- A market situation in which there is only one buyer for a particular product or service, giving that buyer control over price and terms.
- The local labor market became a monopsony when the only factory closed all other competitors.
- In a monopsony, the single buyer can force suppliers to lower their prices.
- Economists argue that a monopsony can be as harmful as a monopoly for consumers and workers.