Dealing with monopsony power: Employment subsidies vs. minimum wages

Strobl, Eric; Walsh, Frank

doi:10.1016/j.econlet.2006.08.005

Cited by 13 publications

(17 citation statements)

References 18 publications

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“…Monopsonistic power is a mirror reflection of monopoly power: it is a buyer's market power but not seller's market power (Dassiou, Glycopantis 2008;Matsudaira 2014;Danziger 2010;OECD 2008;Bonanno, Lopez 2012;Barr, Roy 2008;Brennan 2011;Strobl, Walsh 2007). Monopsonistic power can be invoked directly and indirectly.…”

Section: Monopsony and Power Of Buyermentioning

confidence: 99%

“…In the case of monopsonistic power this is achieved through the emphasis on lower purchase volumes, when during the actions of negotiating power is promised to buy less (Brennan 2011;Strobl, Walsh 2007). The main difference, which is revealed in the case of monopsonistic power is that in this case the prices are reduced below competitive level, when in the case of negotiating power seller operates still in a competitive level (OECD 2008;Bonanno, Lopez 2012;Strobl, Walsh 2007). Monopsonistic and oligopsonic power (assuming that there is no price discrimination) leads to market distortions.…”

Section: Monopsony and Power Of Buyermentioning

confidence: 99%

“…The extent to which customers receive the benefits from negotiating power depends on the nature of contracts with suppliers and the level of consumer market competitiveness. Increased consumer competition and their extent determine that this negotiating power provides higher discounts for wholesale price, and brings greater benefits to consumers (OECD 2008;Bonanno, Lopez 2012;Strobl, Walsh 2007).…”

Section: Monopsony and Power Of Buyermentioning

confidence: 99%

“…Similarly, the profit of seller transaction depends on his ability and willingness to look for other buyers. The essential factors influencing negotiating power, which shows that the buyer has more alternatives than the seller: the buyer can easily switch suppliers without incurring significant additional costs (the buyer is intermediary of a consumer market) (Matsudaira 2014;Danziger 2010;OECD 2008;Bonanno, Lopez 2012;Brennan 2011;Strobl, Walsh 2007).…”

Section: Monopsony and Power Of Buyermentioning

confidence: 99%

“…The distortion of market competition conditions and circumstances, examined the following scientists: monopsony cases - Dassiou and Glycopantis (2008);OECD (2008);Matsudaira (2014);Danziger (2010); Bonanno and Lopez (2012); Barr and Roy (2008);Brennan (2011);Melnikas and Smaliukienė (2007); Strobl and Walsh (2007); monopoly cases -Mirman et al (2014);Rogers 2013;Braido and Shalders (2015); Sarafopoulos (2015); Jablanovic (2013); Willington and Ning (2014); Mumuni et al (2016); Lai et al (2016);Mendoza (2016); Matsumoto and Szidarovszky (2015); Kováč and Žigić (2016);Shin (2017).…”

Section: Introductionmentioning

confidence: 99%

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International Business Negotiations: Search of the Balance and the Equilibrium of Negotiating Powers, under Distorting Market Conditions of Competition (Monopsony, Oligopsony and Monopoly Cases)

Peleckis

Peleckienė

2017

Proceedings of 5th International Scientific Conference Contemporary Issues in Business, Management and Education ‘2017

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Abstract. Certain challenges arise in business negotiations when competition in the market is more or less distorted. This can take place in various markets conditions. In such situations great possibilities open up to the development of international business relations as overclocking new market participants can provide additional alternatives for companies and organizations or other business units, by reducing the negative impact of competition distortions for the balance of negotiating power of participants in negotiations. In the development and implementation of effective international business negotiation strategy, it is important to identify the balance of negotiating power of major participants in negotiations in order to make more efficient use of the potential of business negotiations -the negotiating powers. The aim of this article is to analyze in complex the unfolding theory and practice of development and implementation of international business negotiations and negotiating strategies under distorting market competition conditions, to reveal opportunities on development and implementing improvements of these strategies in cases of monopsony, oligopsony and monopoly. Object of the research is the search of balance on negotiating powers in international business negotiations under conditions of distorted competition in the market. The scientific problem -negotiation theory lacks measures for assessment and balancing the negotiating powers of negotiation's participants under distorted market competition.

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