Circuit, "[T]he exercise of monopsony power
to temporarily reduce consumer prices does not qualify as an efficiency that can justify an otherwise anticompetitive [activity]....
Addressing monopsony power
under antitrust law can be confusing because of a tendency to presume that low prices are invariably good ones.
(6) Though sometimes ignored or lumped together with the exercise of classical monopsony power
by litigants and courts, bargaining leverage should be analyzed separately, given its distinct economic effects.
First, monopsony power
is generally frowned upon by the U.S.
(19.) The legislative history of the Sherman Act is clear that Congress intended to protect suppliers without market power--small, competitive suppliers--from monopsony power
that was acquired or maintained without justification.
nationwide effects on programming purchasing via monopsony power
"The focus on consumers led people to think, if Amazon can get cheaper prices, who's to complain, without realizing that monopsony power
is squeezing authors," says Nobel Prize-winning economist Joseph Stiglitz.
exemption was to eliminate the monopsony power
wielded by intermediary
However, one subject escaped attention: the growing monopsony power
of employers--a monopsony being a market where the purchaser of goods and services can dictate terms since one buyer faces many sellers.
If instead provider markets are competitive and insurer concentration creates more monopsony power
, one would expect utilization to fall as prices fall.
"Comcast will not possess monopsony power
as a result of the Time Warner Cable acquisition," Comcast spokeswoman, D'Arcy Rudnay, told the paper.
These purchasing efficiencies, however, have to be balanced against the potential to create monopoly buying power (monopsony power
) and facilitate collusion through standardization of costs and information sharing.
Three related factors contributed to this: the ability to gain legitimacy, the ability to use competition to promote access and equity and the ability to use monopsony power
as an indirect means of government regulation.
(81) Thus, the competition for fed cattle is inherently fragile, even without the added burden of market power abuses from concentrated meatpackers that wield considerable monopsony power
This edition has updated treatment of the new health care reform act, discussion of the health care system in Switzerland and competition between traditional Medicare and Medicare Advantage plans, a rewritten chapter on the private health insurance industry to reflect studies on market power, more on the monopsony power
of insurers, comparison of the US health care system with other countries in terms of the three-legged stool of medicine and the US system in terms of the supply and demand model of a health economy, information on the proposed single-payer system in Vermont, and a new appendix on the Grossman model of the demand for health, in addition to updated statistics, added empirical studies, and rewritten and condensed chapters.