In order to comprehend the ontological construction below, please refer to the respective posts for all notions in italic.
The monopsony presents a single buyer on the market. It describes a solitary market entrepreneur not simply on the side of demand for a specific commodity yet also on the side of supply. When a good is demanded on the market, other counter-good should be demanded there too in order a market exchange to take place. The monopolistic market reveals here a monopsony trading with another monopsony in opposition to a monopoly. The two sides of the monopsony seek to maximise the consumer surplus by setting a price for the respective commodity, which is equal to the minimal acceptable contribution to the consumption of the commodity’s last part.
Historical Backdrop
• ALFRED MARSHALL Principles of Economics: monopolies as buyers.
• JOAN ROBINSON The Economics of Imperfect Competition: monopsony.
