Explain SMBC — the wiki for Saturday Morning Breakfast Cereal

monopsony

2021-11-03 View on smbc-comics.com → 1 revision
monopsony
Votey panel for monopsony
This explanation is incomplete or may contain errors. It was generated by AI and has not yet been reviewed by a human editor.

Explanation

This comic explains the economic concept of monopsony -- a market condition where there is only one buyer (as opposed to a monopoly, where there is only one seller). A character smugly tells someone "I think you should be nicer to me," arguing that since they are the only employer in town, they have total control over the other person's housing and food supply, and could pay them nothing.

The other person protests, and the monopsonist enthusiastically agrees -- "But that's coercion!" -- revealing that the entire point is to illustrate how monopsony power is inherently coercive. The comic uses a direct, almost Socratic dialogue to show how a single buyer in a labor market can exploit workers just as effectively as a monopolist exploits consumers. The humor comes from the villain-like glee with which the monopsonist explains their power, making the usually dry economics concept viscerally understandable. The child character at the bottom who calls it "coercion" serves as the audience surrogate, stating the obvious moral conclusion that economic jargon often obscures.

View History (1) Original Comic
← Previous Comic Next Comic →