China trend of the day

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.

Comments

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?

http://econball.blogspot.com/2006/05/oligopsony.html

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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