You are right that regulations can create monopsony and monopoly type problems.

This is the phenomenon of regulatory capture and is a big problem in labor markets with respect to monopsony because of occupational licensing where certain certificates or other credentials become required to work in particular fields. Jason Furman has done a lot of work in this area:

https://obamawhitehouse.archives.gov/sites/default/files/page/files/20151102_occupational_licensing_and_economic_rents.pdf

Written by

I am interested in politics, economics, & policy. I work as a data scientist and am passionate about using technology to solve structural economic problems.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store