Alan Krueger, a former head of the Council of Economic Advisers in the Obama administration, told central bankers gathered in Jackson Hole, Wyo., that economists have to get over the idea that simply supply and demand determines the wage and there is nothing firms can do about it, MarketWatch reported. “I think it is more appropriate to model the labor market as imperfectly competitive, subject to monopsony-like effects, collusive behavior by firms, search frictions, and surpluses that are bargained over,” Krueger said. Monopsony is the flip side of a monopoly; it occurs when a buyer can set its own price.