Tuesday, 4 September 2018

i owe my soul to the company store

Though the market structure could be used to characterise the case for single-payer health insurance and a universal basic income, when misapplied to competitive markets, monopsony (from the Greek μόνος + ὀψωνία, single purchase) removes constraints that would otherwise lure away workers and consumers and encourage them to shop for alternatives.
Different from a cartel that sets prices by consensus, a company with monopsonistic dominance acts like a vertical monopoly (single seller) on the macroeconomic level that’s able to dictate wages and the sales price because of isolation—understood originally in the sense of mobility and motility, as in a mining town that quarters its workers and pay in scrip redeemable at the company-owned outlet but now understood as barriers to entry maintained by industry giants in order to keep their hegemony—and reduces the good that the aggregate surplus does for the employee and seller for sales managed through a big vendor, the cost-per-engagement for a retailor or advertiser. What do you think?  Such is the price of cheap conveniences.