Word of the Day: Monopsony

Philip-Elmer DeWitt, culling analysis from Horace Dediu’s podcast and this thread on Quora:

In this way, according to Dediu, Apple has become not a monopoly (a single seller), but a monopsony — the one buyer that can control an entire market.

A compelling argument that Apple is using its cash hoard to great competitive advantage.

★ Tuesday, 5 July 2011