In economics, a monopsony (from Ancient Greek μόνος (monos) "single" + ὀψωνία (opsōnia) "purchase") is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers. As the only purchaser of a good or service, the "monopsonist" may dictate terms to its suppliers in the same manner that a monopolist controls the market for its buyers.Today Aberdeenshire Councild decided to make Donald Trump a monopsony*.
On a vote of 7 to 3, Formartine Area Committee decided today to reject 7 other interested parties and negotiate to sell a small piece of land to Trump.
If you reject all possible purchasers but one, you have no way of knowing that the price you get is the highest possible. And Aberdeenshire Council does not have a reputation as a tough negotiator with Trump.
I argued for an open process and let the highest bid win. Logically that highest bid should have been Trump. The land, if it is key to the development, is worth more to Trump than anyone else. But my colleagues with the honorable exceptions of Cllr Paul Johnston and Cllr Davidson, are simply happy to sell to Trump. Frankly the numbers mooted in the surveyors report don't sound large to me.
I also worry that the value put on this land will somehow impact the value put on my constituent's houses if - and I sincerely hope sense prevails well before we get that far - if CPOs are even used.
* I've wanted to use the word monopsody for years and never before came even close to having a chance!