These laws are justified as necessary to prevent districts from using their monopsony power to push wages inefficiently low.

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Some economists argue this makes no sense, despite the fear of a loss of pricing power to a Chinese monopsony.

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In classic economics the benefits of competition are clear enough, but in the monopsony that is the military marketplace the government must pay all the costs for sustaining competition.

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In addition, in areas where temporary monopsony power arose and generated rents for employers it would provide firms with the incentive to locate there and bid up the below market wages until they reached the competitive level.

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