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Buyer Power: Economic Theory and Antitrust Policy

In: Research in Law and Economics

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  • Zhiqi Chen

Abstract

The objective of this paper is to survey the recent developments in economic theories of buyer power and using the theories as a guide to discuss how antitrust cases involving buyer power can be analysed. An important conclusion that emerges from this survey is that the competition effects of buyer power are quite different depending on whether it is monopsony power against powerless suppliers or countervailing buyer power against large suppliers with market power. A proposed framework of antitrust analysis is presented, and issues related to market definitions and determination of buyer power are discussed.

Suggested Citation

  • Zhiqi Chen, 2007. "Buyer Power: Economic Theory and Antitrust Policy," Research in Law and Economics, in: Research in Law and Economics, pages 17-40, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rlwezz:s0193-5895(06)22002-5
    DOI: 10.1016/S0193-5895(06)22002-5
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    Cited by:

    1. Clerson, Frederick & Royer, Annie & Duchesne, Erick, 2016. "Des quotas aux contrats : perceptions de la filière laitière suisse et analyse contractuelle," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 356(November-).

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