A Monopsony is when there are many sellers of a good or service,
but only a single buyer.
Often farmers take most of the burden in
cost reduction because they're usually submitted to a Monopsony by food processing industries.
It has been argued that Apple has achieved such
efficiency in its supply chain that the company operates as a Monopsony(one buyer with many sellers)
and can dictate terms to its suppliers.
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), in that it can dictate terms to its suppliers.
Therefore the fundamental question remains as to why India agreed to so many concessions, in violation of DPP 2013,
when it was clearly in a strong position as a near Monopsony vis a vis a company starved of orders globally.
As the late Princeton University economist
Alan Krueger pointed out last year, Monopsony power- the power of buyers(employers)
when there are only a few- has probably always existed in labour markets“but the forces that traditionally counterbalanced Monopsony power and boosted worker bargaining power have eroded in recent decades”.