The DoD is unable to act as a perfectly price-discriminating monopsonist
because its demands are often unpredictable and unreliable.
When a monopsonist
reduces input purchases, it generally makes further adjustments, such as increasing its purchase of other inputs (e.g., substituting machinery for labor) and reducing the quantity or quality of its output (e.g., less coal from the mine, or lower patient staffing ratios at hospitals).
The issue of capital intensity chosen by the monopsonist
is addressed both by making use of simple graphical instruments and by investigating a constant elasticity of substitution (CES) production function.
(28.) The monopsonist
can dictate terms to its suppliers.
A labor monopsonist
, thus, has the ability to pay its workers below the market, thereby generating excess profits.
The Nash bargaining solution that is assumed (cases where the upstream firm acts as a monopolist or the downstream firm as a monopsonist
are particular examples) always leads to efficient outcomes.
In particular, as a former chief industrial strategist at the Pentagon observed, "Better Buying Power has taken aim at eradicating what it views as a sclerosis of comfortable contractor incumbency...and reads like a monopsonist
's playbook for defense in the 21st century" (Grundman, 2010, p.
is willing to pay the cost of hiring the worker whenever her productivity is sufficiently high relative to her wage and fires the worker when her productivity falls too low.
(301) To its suppliers--music companies--China Mobile is therefore a monopsonist
. (302) As is generally the case with monopsonies, the supplier is exposed to a significant risk that it cannot extract the fair value of its contribution to the service.
Artificial pricing set by a monopsonist
government buyer is a recipe for economic catastrophe.
The 90-year old helium market has, at different times, been dominated by the government as a monopoly supplier, a monopsonist
buyer, or a regulator.
It has been demonstrated that if in a non-prioritarian economy the operators of a political party have monopsonist
power in the vote market, then ideal point [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] of the governing party in the political space is located in segment [[e.sub.2][w.sub.A], sq].
One of its choicest observations is that pressure groups like the Chamber of Commerce or labor groups are like firms facing a monopsonist
: "Republican critics of the Democratic party like to portray the Democratic party as the slave of organized labor.
A single buyer in a market (the monopsonist
) unavoidably affects
To illustrate the basic economics, this section compares a perfectly competitive pre-conspiracy market (competitive for both buyers and sellers) with a post-conspiracy market in which the buyer side of the market is entirely cartelized (i.e., the buyers act as if they were a single buyer--a monopsonist
) and the seller side is competitive.