Christou, Charalambos; Papadopoulos, Konstantinos G. - In: Economics Letters 126 (2015) C, pp. 110-113
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.