This trade was legally limited to Spain : the Spanish Crown enforced a monopsony which limited supplies and enabled Spanish merchants to mark up prices and increase profits.
32.
Thus, spotting the effects on employment of newly introduced minimum wage regulations is among the indirect ways economists use to pin down monopsony power in selected labor markets.
33.
Monopsony is commonly applied to buyers of labour, where the employer has wage setting power that allows it to exercise Pigouvian exploitation and pay workers less than their marginal productivity.
34.
However, monopsony power might also be due to circumstances affecting entry of workers on the " supply " side, directly reducing the elasticity of labour supply to firms.
35.
It achieved this through the use of a monopsony ( single buyer ) regime within Australia, where wheat growers were only able to sell on their wheat to a single desk.
36.
The market failure can only be addressed in one of two ways : either by breaking up the monopsony through anti-trust intervention, or by regulating the wage policy of firms.
37.
An alternative that has been suggested as a source of monopsony power is worker preferences over job characteristics ( Bhaskar and To, 1999; Bhaskar, Manning and To, 2002 ).
38.
It has been argued that Apple has achieved such efficiency in its supply chain that the company operates as a monopsony ( one buyer, many sellers ) and can dictate terms to its suppliers.
39.
In 1933 in her book " The Economics of Imperfect Competition ", Robinson coined the term " monopsony, " which is used to describe the buyer converse of a seller monopoly.
40.
Following such definitions, the grey rectangle, in the diagram, is the part of the competitive social surplus that has been redistributed from the workers to their employer ( s ) under monopsony.
