Monopsony

In economics, a monopsony is a market with only one buyer. This can be compared to a monopoly in which there is only one seller.

Examples

• An example of a market with a monopsony is the market for road construction, in which there are many suppliers but only one significant buyer (the government).
• The arms industry is another example when the only (domestic) customer is the state.

See also:

Market forms, Oligopsony