The occurrence of this condition in labor markets is the subject of a 1997 paper by William Boal and Michael Ransom which gives as examples of this concept professional baseball players and college athletes.
The occurrence of this condition in labor markets is the subject of a 1997 paper by William Boal and Michael Ransom which gives as examples of this concept professional baseball players and college athletes. When this condition prevails, wages are redistributed from the employee to the employer, and the inverse of the rate of exploitation gives the elasticity of the labor supply curve. It can lead to market failure by restricting the quantity of good purchased relative to a Pareto-optimal situation and can be alleviated in labor markets through a minimum wage. For ten points, identify this economic condition in which there is only one buyer.
The occurrence of this condition in labor markets is the subject of a 1997 paper by William Boal and Michael Ransom which gives as examples of this concept professional baseball players and college athletes.
{monopsony}