New words such as ‘monopsony’ and the ‘Amazon effect’ have been coined by US central bankers and economists in the background of growing dominance of few companies and its impact on wages, inflation and growth.
Monopsony:
A monopsony is also called a buyer’s monopoly.
It is a market condition similar to a monopoly but where a large buyer, and not a seller, controls a sizeable proportion of the market and drives prices down.
Amazon effect:
This term has been coined to describe fast-changing pricing algorithms by the online retailer and its rivals, which could potentially lead to bigger swings in inflation.
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