Countervailing Market Power and Consumer Surplus: An Empirical Examination

Monopsony and Countervailing Power in the Market for Nurses

Introduction In recent years, there have been a number of antitrust suits filed by registered nurses (RNs) alleging that their wages and other terms of employment have been depressed through collusion among the hospitals in their local market. In most of these cases, the issue involved collusive monopsony, which is unlawful as discussed in the Supreme Court’s Mandeville Island Farms decision. T...

Consumer Options:Theory and an Empirical Application to a Sports Market

Marketing, Kelley School of Business, Indiana University (e-mail: [email protected]), Sridhar Balasubramanian is Roy & Alice H. Richards Bicentennial Scholar and Professor of Marketing (e-mail: Sridhar_ [email protected]), and Barry L. Bayus is Roy O. Rodwell Distinguished Professor of Marketing & Entrepreneurship (e-mail: Barry_ [email protected]), Department of Marketing, Kenan-Flagler B...

Countervailing Power and Upstream Innovation

We challenge the view that the presence of powerful buyers stifles suppliers’ incentives to innovate. Following Katz (1987), we model countervailing (or buyer) power as the ability of, in particular, large buyers to substitute away from a given supplier. We employ a bargaining framework and find that the presence of larger and more powerful buyers increases a supplier’s incentives to reduce mar...

Countervailing Power and Chain Stores

An examination of sources of sensitivity of consumer surplus estimates in travel cost models.

We examine sensitivity of estimates of recreation demand using the Travel Cost Method (TCM) to four factors. Three of the four have been routinely and widely discussed in the TCM literature: a) Poisson verses negative binomial regression; b) application of Englin correction to account for endogenous stratification; c) truncation of the data set to eliminate outliers. A fourth issue we address h...