Countervailing Market Power and Consumer Surplus: An Empirical Examination

J. Ale-Chilet, Juan Pablo Atal

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review


A current debate in antitrusts analyzes whether to allow horizontal agreements that counteract large imbalances of power in vertical negotiations. We leverage detailed data to empirically assess the consequences for patients of a recent case in which a group of physicians in Chile formed a trade association to improve their bargaining position with insurers. As a result of this agreement, out-of-pocket costs increased by 160 percent. Overall, we find large decreases in consumer surplus.
Original languageAmerican English
Title of host publicationAEA Papers and Proceedings
EditorsWilliam R. Johnson, Ginny Herbert
PublisherAmerican Economic Association
Number of pages5
StatePublished - 2020

Bibliographical note

Place of conference:San Diego, USA
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)


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