Monopsony in Law and Economics

Provides a comprehensive examination of the economic analysis of monopsony.

Roger D. Blair (Author), Jeffrey L. Harrison (Author)

9780521762304, Cambridge University Press

Hardback, published 6 September 2010

264 pages, 16 b/w illus. 7 tables
23.5 x 15.8 x 1.9 cm, 0.48 kg

'This work sets out the fundamental economics of monopsony in a way that will satisfy economists yet is accessible to lawyers. It canvasses the current law on monopsony, taking account of the Supreme Court's provocative case on predatory buying and other recent developments. It contains timely new chapters examining agricultural markets, the NCAA, and physician collective bargaining. The authors' message is that monopsony is more prevalent than many think and not as well understood as it should be. Lucid, comprehensive, and insightful, Monopsony is the definitive treatment of a difficult and overlooked area. It has no good substitute. Serious students of antitrust law and economics will find it indispensable.' John E. Lopatka, Pennsylvania State University and the Dickinson School of Law

Most readers are familiar with the concept of a monopoly. A monopolist is the only seller of a good or service for which there are not good substitutes. Economists and policy makers are concerned about monopolies because they lead to higher prices and lower output. The topic of this book is monopsony, the economic condition in which there is one buyer of a good or service. It is a common misunderstanding that if monopolists raise prices, then monopsonists must lower them. It is true that a monopsonist may force sellers to sell to them at lower prices, but this does not mean consumers are better off as a result. This book explains why monopsonists can be harmful and the way law has developed to respond to these harms.

1. Introduction
2. The antitrust laws and monopsonistic forms of conduct
3. Economic theory of monopsony
4. The antitrust response to monopsony and collusive monopsony
5. Cooperative buying efforts
6. Bilateral monopoly
7. Monopsony and antitrust enforcement
8. Monopsony in action: agricultural markets
9. Monopsony in action: the NCAA
10. Monopsony in action: physician collective bargaining: monopoly or bilateral monopoly
11. Final comments.

Subject Areas: Law [L], Economics of industrial organisation [KCD], Economics, finance, business & management [K]