A monopsony is a market situation in which there is a single buyer or dominant entity that exerts significant control over the demand for a particular good or service, while there are multiple suppliers or sellers in the market. In other words, it is the counterpart of a monopoly, where a single seller dominates the market.
Key characteristics of a monopsony:
Monopsonies can have significant effects on the market and on suppliers. They can lead to supplier exploitation, reduced competition, and limited innovation. To address these issues, some jurisdictions have antimonopoly regulations and laws in place to prevent or control monopsonistic situations and promote competition in the market.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.