power over a particular factor of production. Coupled with the ability to drive a particular industry in the direction that is beneficial for the monopsolist An oligopsony is an economic market state in which there is a small pool of dominant buyers. Similar to a monopsony, an oligopsony is a group of few powerful buyers that demand the majority of goods and services purchased. Monopsonies and oligopsonies are market states in which one or several firms have significant market power over their specific factor market. Firm's with substantial amounts of market power has been debated on their ability to benefit industries within the factor market. There are growing concerns with monopsonists and oligopsonist in areas with specific types of labor. Labour markets are affected by firms with high levels of monopsony power. Sparking controversy specifically in the areas of employees’ earnings and social welfare, due to the decline in aggregate levels of income. See also Product markets Capital markets Market economy Notes References Boyes, W. and Melvin. M. (2002) Microeconomics 5th ed. Houghton. Colander, David C. 2005 Microeconomics 7th ed. McGraw-Hill Frank, R., Microeconomics and Behavior 7th ed. (Mc-Graw-Hill) . Mankiw, G. (2007) Principles of Microeconomics 4th ed. Thomson. Negbennebor, A: Microeconomics, The Freedom to Choose CAT 2001 Perloff, J. (2009) Microeconomics 5th ed. Pearson. Pindyck, R & Rubinfeld, D: (2001) Microeconomics 5th ed. Page Prentice-Hall. Samuelson, P. & Nordhaus, W.: Microeconomics, 17th ed. 2001 McGraw-Hill Willis,J. Explorations in Microeconomics, 5th rd. 2002 North West. External links Factors of production