Monopsony

When owners of major league baseball teams collude in dealing with free agents, when universities meet to avoid a bidding war for the most desirable students, when large manufacturing or processing facilities fix purchase prices of raw materials at artificially low levels, and when dealers rig the bids in public auctions, monopsony power is being exercised. Drawing on microeconomic theory and antitrust law, this broad-ranging work explores the implications of monopsony, or buying power, for antitrust policy. Roger Blair and Jeffrey Harrison argue that monopsony is more prevalent than usually…