In economics, a monopsony is a market structure in which a single buyer controls the market as the major purchaser of goods and services offered by many would-be sellers. In the microeconomic theory of monopsony, a single entity is assumed to have market power over sellers as the only purchaser of a good or service, much in the same manner that a monopolist can influence the price for its buyers in a monopoly, in which only one seller faces many buyers. Monopsony theory was developed by economist Joan Robinson in her book The Economics of Imperfect Competition. Economists use the term "monopsony power" in a manner similar to "monopoly power" as a shorthand reference for a scenario in which there is one dominant power in the buying relationship, so that power is able to set prices to maximize profits not subject to competitive constraints. Monopsony power exists when one buyer faces little competition from other buyers for that labour or good, so they are able to set wages and prices for the labour or goods they are buying at a level lower than would be the case in a competitive market.
A classic theoretical example is a mining town, where the company that owns the mine is able to set wages low since they face no competition from other employers in hiring workers, because they are the only employer in the town, geographic isolation or obstacles prevent workers from seeking employment in other locations. Other more current examples may include school districts where teachers have little mobility across districts. In such cases the district faces little competition from other schools in hiring teachers, giving the district increased power when negotiating employment terms. Alternative terms are monopsonistic competition; the term was first introduced by Joan Robinson in her influential book, The Economics of Imperfect Competition, published in 1933. Robinson credited classics scholar Bertrand Hallward at the University of Cambridge with coining the term; the standard textbook monopsony model of a labour market is a static partial equilibrium model with just one employer who pays the same wage to all the workers.
The employer faces an upward-sloping labour supply curve, represented by the S blue curve in the diagram on the right. This curve relates the wage paid, w, to the level of employment, L, is denoted as an increasing function w. Total labour costs are given by w ⋅ L; the firm has total revenue R, which increases with L. The firm wants to choose L to maximize profit, P, given by: P = R − w ⋅ L. At the maximum profit P ′ = 0, so the first-order condition for maximization is 0 = R ′ − w ′ ⋅ L − w where w ′ is the derivative of the function w, implying R ′ = w ′ ⋅ L + w; the left-hand side of this expression, R ′, is the marginal revenue product of labour and is represented by the red MRP curve in the diagram. The right-hand side is the marginal cost of labour and is represented by the green MC curve in the diagram. Notably, the marginal cost is higher than the wage w paid to the new worker by the amount w ′ L; this is because, by assumption, the firm has to increase the wage paid to all the workers it employs whenever it hires an extra worker.
In the diagram, this leads to an MC curve, above the labour supply curve S. The first-order condition for maximum profit is satisfied at point A of the diagram, where the MC and MRP curves intersect; this determines the profit-maximizing employment as L on the horizontal axis. The corresponding wage w is obtained from the supply curve, through point M; the monopsonistic equilibrium at M can be contrasted with the equilibrium that would obtain under competitive conditions. Suppose a competitive employer entered the market and offered a wage higher than that at M; every employee of the first employer would choose instead to work for the competitor. Moreover, the competitor would gain all the former profits of the first employer, minus a less-than-offsetting amount from the wage increase of the first employer's employees, plus profit arising from additional employees who decided to work in the market because of the wage increase, but the
Glasgow South West is a constituency of the House of Commons of the Parliament of the United Kingdom. As in all other seats since the 1950 abolition of multi-member university returns to the Commons, its eligible residents who vote in General Elections elect one Member of Parliament by the first past the post system of election; the seat saw its first MP at the 2005 general election. Its 2017 general election result was a winning margin of 60 votes; the Glasgow City wards of Cardonald, Darnley, Govan, Mosspark, North Cardonald and Pollok. The seat is one of seven covering the Glasgow City council area. Before the 2005 general election the City was covered by ten constituencies, of which two straddled boundaries with other council areas; the area's representatives before its inception were those for Glasgow Pollok and to a lesser extent Glasgow Govan. Scottish Parliament constituencies retain the boundaries of the immediate forebear seats. Politics of Glasgow ♯. You select the year and the constituency to view the result
Irena Lasota is a Polish philosopher, publisher and political activist, president/co-director of the Institute for Democracy in Eastern Europe. Lasota began her political activism as a student in Poland during the 1968 Polish political crisis, which pitted protesting students against the then-Communist government. Soon after the so called March events, Lasota would emigrate to the United States returning to Europe in the first half of the 1980s to settle down in France. Lasota is to this day a frequent commentator on Polish and American political affairs, remains an outspoken supporter of freedom of speech and democratic institutions. Born in France shortly after the conclusion of World War II in Europe, Lasota would return to Poland with her family in 1948 where they changed their family name from Hirszowicz to Lasota. In 1958 she became a member of the "Hufiec Walterowski", a youth organization re-activated in 1956 under the mantle of the Polish Scouting and Guiding Association following the period of Stalinism in Eastern Europe.
The Troop was led at the time by Jacek Kuroń, would produce many other leaders of the democratic opposition in Communist Poland, including Andrzej Seweryn and Adam Michnik. Between 1962 and 1968 Lasota studied philosophy at the University of Warsaw. In 1964 she created a discussion group in cooperation with other students, amongst whom were Teresa Bogucka, Maciej Czechowski, Józef Dajczgewand, Wiktor Górecki; the group's members practised self-education in the area of social sciences, sharing a copy of the Parisian magazine "Kultura", organizing an emergency fund in case of government reprisals, took part in open meetings of the Socialist Youth Association, of which Lasota was a member for three months in 1964. Lasota's group would ideologically distance itself from another active student group headed by former Walter Troop member Adam Michnik. Kuroń commented on this cooling of relations: "In accordance with the rules presented to them by Irena, they aimed at attracting youth living in the student dorms, youth from rural areas, those with a worker and peasant background.
They accused Adam and his colleagues of elitism, of closing themselves off in their own circle, or lounge as they called it". Between 1966 and 1967 Lasota prepared for a role as debate leader at the open-entry ZMS meetings. During this time she became acquainted with Antoni Zambrowski and began aiding him in the distribution of transcribed illegal publications, i.e. translating banned political science writings. In 1987 and the following year, she would begin co-editing and disseminating pamphlets around the University of Warsaw and work as editorial assistant for the publication "Wiedza Powszechna". In January 1968 Lasota was party to the culminating events leading to the March crisis and wave of student protests in Poland. On January 30, 1968, a student demonstration took place in Warsaw against the censuring and removal of the play "Dziady" from the National Theatre. Directed by Kazimierz Dejmek, the play had run for four nights before Dejmek was ordered that the show be limited to playing once a week, normal ticket sales for students capped at 100 seats, the public's reaction noted down by the director.
Though subject to confiscations and controls by Security Services and student members of Warsaw University's ZMS, Lasota was able to compile a petition of 3145 signatures sent by mail to the Marshal of the Sejm on February 16. During a pre-planned rally on March 8, she called for the return of Michnik and Henryk Szlajfer, both of whom had been expelled from the university, as well as for a halt to all other disciplinary action against Warsaw's students. Having presented their demands, Lasota met with the deputy rector of the university as part of a student delegation. Following the rally Lasota was arrested and tried by the misdemeanour board, receiving a two-month prison sentence on the grounds of "standing on a public bench in muddied boots", she faced further prosecution the following year. In April 1969 she was tried and sentenced once again, this time for a year and a half for belonging to a secret organization. Over this same period Lasota, in cooperation with Jakub Karpiński, Grażyna Kuroniowa, Andrzej Zabłudowski, collected information to be sent abroad concerning the ongoing legal proceedings of individuals prosecuted for their involvement in the March events.
In 1970 Lasota left Poland with her then-husband Zabłudowski, following his expulsion from the University of Warsaw. Under the pretext of emigration to Israel, the couple transited and emigrated to the United States that same year. Lasota resumed her studies, graduating from Temple University in Philadelphia in 1972 with a degree in special education, she would work as a child therapist for the next nine years until 1982. In 1975 she returned to school, this time completing a degree in political sciences with a specialization in International Communism at Columbia University in 1979; this led her to become a lecturer in this field at Fordham and Yale universities between 1980-81. Lasota remained politically active around events unfolding in Poland over this same period. Though banned from entering the country, she was able to attain a visa and return to Poland on four occasions, in 1975, 1977, 1979, 1984, bringing with her and disseminating illegal publications among her friends, she worked to promote awareness of events in Poland by providing western mass media outlets with current information.