The paper was commissioned by the OFT as part of its ongoing programme of economic research. Paul Dobson of Loughborough University, Michael Waterson of the University of Warwick and Alex Chu of the University of Nottingham have looked at developments in market structure and profitability in the UK retail sector between 1980 and 1996.
Some countries prohibit the pricing policies of firms which discriminate in favour of larger buyers.
Elsewhere buyer power has been viewed as essentially benign and not an appropriate issue for competition authorities, say the authors. Blanket regulatory intervention against discounts to large buyers is more likely to inhibit than to stimulate the competitive process, they say. OFT research papers are published to stimulate debate and inform companies and their advisers about recent developments and best practice in competition policy. They do not necessarily represent OFT policy. Previous reports have covered topics such as Market Definition, Barriers to Entry, Vertical Restraints and Predation .