from Part IV - Buyer Cartels
Published online by Cambridge University Press: 24 November 2022
In recent years, the exercise of monopsony power has become more prevalent in labor markets, particularly through anticompetitive agreements among firms. No-poaching agreements are agreements among rival employers to refrain from hiring another firm’s employees. No-poaching agreements deprive employees of the competitive benefits that result from outside employer interest. Recent litigation in a variety of industries highlights the competitive concerns with no-poaching agreements. In this chapter, we explore the role of monopsony and buying power in no-poaching agreements and specifically review a no-poaching case involving the deans of two medical schools in North Carolina.
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