| Author (Person) | Colitti, Katia |
|---|---|
| Publisher | Taylor & Francis |
| Series Title | European Competition Journal |
| Series Details | Volume 12, Number 2-3, Pages 361-386 |
| Publication Date | June 2016 |
| ISSN | 1744-1056 |
| Content Type | Journal Article |
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Abstract: This note examines the value of the concept of countervailing buyer power (“CBP”) in competition analysis. What does CBP add to the analysis beyond recognizing the key role of buyers’ outside choices, which largely duplicates the inquiry into the effectiveness of the merged company’s competitors? Does saying that the buyer can sponsor entry or integrate upstream differ from concluding that barriers to entry are low? Does arguing that a particular buyer of multiple products has CBP in one market because it can punish the merged company in another market explain why that buyer has not already extracted all the surplus it could, given its premerger outside options? The note explores these and other questions and concludes that, in practice, CBP amounts to little more than another way of analysing market definition and examining buyer alternatives. |
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| Source Link | Link to Main Source https://doi.org/10.1080/17441056.2017.1286877 |
| Related Links | |
| Subject Categories | Internal Markets |
| Subject Tags | Competition Law | Policy |
