An Austrian Critique of Neo-Classical Monopsony Theory by Walter Block (Loyola University New Orleans) and William Barnett II
The present paper is devoted to a critical analysis of monopsony, particularly as it impacts arguments in support of the minimum wage law made on the basis of it. In section II we depict the model as offered by its neoclassical proponents; section III is devoted to criticisms of this model which emanate from within the mainstream economic tradition; section IV, the core of our paper, is devoted to Austrian or praxeological criticisms of monopsony in general, and, in particular, support for minimum wages that can be made upon monopsonistic grounds.
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