MONOPSONYmonopsony (m[schwa]-nop-s[schwa]-nee), n. A market situation in which one buyer controls the market. ¡ª monopsonistic, adj.
¡°Monopsony is often thought of as the flip side of monopoly. A monopolist is a seller with no rivals; a monopsonist is a buyer with no rivals. A monopolist has power over price exercised by limiting output. A monopsonist also has power over price, but this power is exercised by limiting aggregate purchases. Monopsony injures efficient allocation by reducing the quantity of the input product or service below the efficient level.¡± Lawrence A. Sullivan & Warren S. Grimes, The Law of Antitrust: An Integrated Handbook 137¨C38 (2000).