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Oligoemporistic Competition and the Countervailing Power Hypothesis

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  • E. C. H. Veendorp

Abstract

The oligoemporistic competition model developed in this paper describes a market situation where ma rket power is exercised by a subset of traders on both sides of the m arket. It is shown that countervailing power will merely assure that the price level will coincide with the competitive one, but that the allocation of resources can always be improved upon by decreased conc entration on either side of the market.

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  • E. C. H. Veendorp, 1987. "Oligoemporistic Competition and the Countervailing Power Hypothesis," Canadian Journal of Economics, Canadian Economics Association, vol. 20(3), pages 519-526, August.
    • Handle: RePEc:cje:issued:v:20:y:1987:i:3:p:519-26
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    Cited by:

    1. Paul Dobson & Roger Clarke & Stephen Davies & Michael Waterson, 2001. "Buyer Power and its Impact on Competition in the Food Retail Distribution Sector of the European Union," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 247-281, September.

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