The OECD holds a roundtable on monopsony and buyer power

Executive summary, by the Secretariat Considering the discussion at the roundtable, the delegates‘ written submissions, and the background paper, the following key points emerge: (1) Buyer power is concerned with how downstream firms can affect the terms of trade with upstream suppliers. There are two types of buyer power: monopsony power and bargaining power. The distinction between the two types of buyer power is based on their source and the effect of their exercise. A firm has monopsony power if its share of purchases in the upstream input market is sufficiently large that it can cause the market price to fall by purchasing less and cause it to rise by purchasing more. When there are relatively few suppliers and buyers and the terms of trade are determined by bilateral

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  • OECD - Competition Division (Paris)

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OECD, The OECD holds a roundtable on monopsony and buyer power, 1 October 2008, e-Competitions October 2008, Art. N° 85660

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