ABSTRACT
In theory, a lot of attention is paid on the influence of the countervailing power on the market price, products and consumer welfare. Research on Countervailing Power can be traced back to Galbraith’s’ Countervailing power Hypothesis’3. Recently, vonUngern-Sternberg, Dobson & Waterson, Chen analyzed the ‘Countervailing power Hypothesis’. von-Ungern-Sternberg and Dobson & Waterson (1997), respectively, to compete for the buyer forces formed downstream market concentration were studied, and that only when the retailer fierce competition “Countervailing power hypothesis” will be established. Chen considered that the difference of retailers scale exists and the dominant retailers has the countervailing power, and the edge retailer is the premise for ‘Countervailing power Hypothesis’.
