Buyer Countervailing Power: A Survey of Experimental Evidence

Bradley Ruffle

No 512, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: The rise of mega-retailers and industry concentration levels has recently generated an interest among economists and antitrust policymakers in the effects of buyer countervailing power. There exists a considerable theoretical literature offering a range of sources of powerful buyers’ ability to extract price discounts. The explanations that have been tested experimentally have all found laboratory support. This paper surveys the theoretical literature on countervailing power, emphasizing experimental tests where available. The increasing policy relevance of this topic and the blossoming of theoretical models contrasted with the dearth of experimental tests point to fruitful directions for research.

Keywords: buyer power; experimental economics; price discrimination; quantity discounts (search for similar items in EconPapers)
JEL-codes: C78 C90 L25 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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