The countervailing power hypothesis in the dominant firm-competitive fringe model

In the dominant firm-competitive fringe model, where firms purchase input from a common supplier via two-part tariff contracts, we demonstrate that countervailing power may be neutral. Unlike Chen (2003), more countervailing power may not lead to lower consumer prices.

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Year of publication:	2015
Authors:	Christou, Charalambos ; Papadopoulos, Konstantinos G.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 126.2015, C, p. 110-113
Publisher:	Elsevier
Subject:	Countervailing power \| Buyer power \| Dominant retailer \| Competitive fringe \| Two-part tariff

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Type of publication:	Article
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L12 - Monopoly; Monopolization Strategies ; L13 - Oligopoly and Other Imperfect Markets ; L14 - Transactional Relationships; Contracts and Reputation; Networks
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011189498