Monopsony Theory

American Review of Political Economy, Vol. 7, Nos. 1/2, June/December 2009

43 Pages Posted: 22 Jul 2011

See all articles by Walter E. Block

Walter E. Block

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

William Barnett

Loyola University New Orleans

Date Written: July 19, 2011

Abstract

This papers attempts to show that the neoclassical analysis of monopsony is erroneous. We deal with this issue under two sub-headings: those compatible with mainstream economics, and those that are not. In the first category are: paucity, wrong target, temporariness, limited window, complexity, information and timing (length of run). In the second category are those stemming from an alternative economic perspective, Austrianism: objective expenses vs. subjective costs, reliance on illegitimate interpersonal comparisons of utility, failure of trade to occur, coerced income transfers, difficulties with perfect competition and geometrical/mathematical considerations.

Suggested Citation

Block, Walter E. and Barnett, William, Monopsony Theory (July 19, 2011). American Review of Political Economy, Vol. 7, Nos. 1/2, June/December 2009. Available at SSRN: https://ssrn.com/abstract=1889438

Walter E. Block (Contact Author)

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
Box 15, Miller 321
New Orleans, LA 70118
United States
(504) 864-7944 (Phone)
(504) 864-7970 (Fax)

William Barnett

Loyola University New Orleans ( email )

526 Pine Street
New Orleans, LA 70118
United States

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