what is a monopsony?

aheemmm ahem … jeff bezos.. aHEMMM

A monopsony is a market condition in which there is only one buyer for a particular good, service, or resource, while many sellers are competing to offer it.

This gives the single buyer significant power to dictate terms, such as setting lower prices, since the sellers have few or no alternative buyers for their product.

A classic example of a monopsony is a company town where one large employer dominates the local labor market. Workers have limited employment options, allowing the company to potentially offer lower wages or poorer working conditions compared to a more competitive labor market.