Professional Writers
We assemble our team by selectively choosing highly skilled writers, each boasting specialized knowledge in specific subject areas and a robust background in academic writing
Order For Similar Custom Papers & Assignment Help Services
Fill the order form details - writing instructions guides, and get your paper done.
Posted: March 4th, 2021
Monopsony and Taste-for-Discrimination Model
(1) Monopsony is an economic situation when there are a number of sellers but only one buyer (monopsonist) in the market. Monopsony can be considered as the model symmetrical to market monopoly, and at monopsonic market not the sellers but buyer can determine the price of the goods in the market. A monopsonist can regulate market price by varying the amount of goods he buys. That is why the price which monopsonist is ready to pay for the goods will be lower than it can be in any competitive market.
The concept of Monopsony was introduced in 1933 by Joan Violet Robinson, a British economist and creator of the theory of imperfect competition. She conducted a series of researches on different economic issues, the results of which were publicized in her book The Economics of Imperfect Competition. She also studied the dynamics of MC and MRP curves in the situation of monopsonic market and compared those with the dynamics of the corresponding curves in terms of competitive markets.
(2) Taste-for-Discrimination model was created by an American economist Gary Becker, who is famous for his studying and interpreting economic concepts from sociological points of view. The model was introduced in the 1950s and described the behavior of employer, which is ready to have extra expenses in order to be associated with some group of the employees instead of another group. Originally, Becker made this assumptions referring to racial discrimination, but the model may be applied not only to racial determinant.
Undoubtedly, such situation in the market can bring to lowering the wages of discriminated groups, though the productivity of all the groups will remain equal. Thus, discriminated employees will have lower utility. Correspondently, monetary profits of non-discriminatory companies will be higher than those of discriminatory companies. In addition, it will affect economic equity, because the companies at the market will tend to segregate the groups of workers in long run period if the customers are ready to pay for the “taste”.
References
Robinson, Joan Violet. (2004) The Columbia Encyclopedia, Sixth Edition. NY: Columbia University Press.
Schwab, S. J. (1999). Employment Discrimination [Brochure]. Cornell University School of Law. Ithaca, NY.
Why choose us
You Want Quality and That’s What We Deliver
Discounted Prices
Our service is committed to delivering the finest writers at the most competitive rates, ensuring that affordability is balanced with uncompromising quality. Our pricing strategy is designed to be both fair and reasonable, standing out favorably against other writing services in the market.
AI & Plagiarism-Free
Rest assured, you'll never receive a product tainted by plagiarism or AI-generated content. Each paper is research-written by human writers, followed by a rigorous scanning process of the final draft before it's delivered to you, ensuring the content is entirely original and maintaining our unwavering commitment to providing plagiarism-free work.
How it works
When you decide to place an order with Nurscola, here is what happens: