China trend of the day

by on May 15, 2006 at 7:04 am in Current Affairs | Permalink

Team buying.  The bottom line?

More and more consumers meet online before banding together at stores to bargain down prices…Some team buyers approach store managers beforehand, others simply show up and flex their collective muscle.

1 Tony Vallencourt May 15, 2006 at 9:34 am

There’s some weird social surplus issues to consider here. Not really any different than with firm colluding, but I wonder how public sentiment would be if consumers start colluding in large numbers?

2 cb May 15, 2006 at 1:07 pm

How does it distort the market? It’s no different than trade associations negotiating with vendors for their members. It’s not like the company is forced to sell to them. Market distortions occur when a third party intervenes in a transaction.

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