Monopsony

A monopsony is a monopoly by a buyer rather than a seller. In other words, a monopsony is a market structure that has only one buyer of a good or service.

Examples of monopsonies include:

• the four major professional sports leagues (Major League Baseball, NFL, NBA, and NHL)
• the Department of War (for many military items; even when allies are allowed to buy items, DoW controls who can and at what levels)

If a monopsony wishes to buy an additional good or service, then it must raise the price for all of the goods to that level, in order to buy the additional one.