What is meant by countervailing power?
Countervailing power refers to buyer market power (that is, the bargaining power of a buyer). For example, a single large buyer or group of buyers may possess sufficient market power to be able to depress the prices paid to sellers or easily switch between alternative suppliers.
What does countervailing power mean in economics?
In marketing terminology, countervailing power refers to the power of the large buyers (trade unions/ stockist etc.) to create competition between its potential suppliers. The term “countervailing power” was coined by American economist John K. Galbraith in his book American Capitalism (1952).
What did John Kenneth Galbraith do?
John Kenneth Galbraith, (born October 15, 1908, Iona Station, Ontario, Canada—died April 29, 2006, Cambridge, Massachusetts, U.S.), Canadian-born American economist and public servant known for his support of public spending and for the literary quality of his writing on public affairs.
What is countervailing power in medicine?
Abstract. Countervailing powers constrain the authority and autonomy of the medical profession. One countervailing power is patient consumerism, a movement with roots in health social movements.
Why is countervailing power important?
Galbraith (1952) to describe the ability of large buyers in concentrated downstream markets to extract price concessions from suppliers. Galbraith saw countervailing power as an important force offsetting suppliers’ increased market power arising from the general trend of increased concentration in US industries.
What role does countervailing power play in power?
The presence of Page 2 Counter power with the subordinate ensures that the superiors use the power judiciously. Counter power acts as the factor that helps to maintain the relationship.
What’s the meaning of countervailing?
transitive verb. 1 : to compensate for. 2 archaic : equal, match. 3 : to exert force against : counteract.
Why did John Kenneth Galbraith criticize America’s affluent society?
Explain why Eisenhower warned Americans about “the military industrial complex”. Why did economist John Kenneth Galbraith criticize the “affluent society” of postwar america? He believed people focused on wealth and ignored problems in society. Identify Levittown.
What does Galbraith mean?
Galbraith Name Meaning Scottish: ethnic name for someone descended from a tribe of Britons living in Scotland, from Gaelic gall ‘stranger’ (see Gall) + Breathnach ‘Briton’ (i.e. ‘British foreigner’).
What is countervailing power organizational behavior?
Countervailing power, or countervailance, is the idea in political theory of institutionalized mechanisms that the wielding of power within a polity having two or more centers can, and often does, provide counter-forces that usefully oppose each other.
What is silent authority?
Silent Authority The silent application of authority (what we call silent authority ) occurs when someone complies with a request because of the requester’s legitimate hierarchical power as well as the target person’s role expectations. We often refer to this condition as deference to authority.
What is a hubris person?
Hubris is the characteristic of excessive confidence or arrogance, which leads a person to believe that they may do no wrong. The overwhelming pride caused by hubris is often considered a flaw in character. Hubris often causes humiliation to whom it is directed.
Who is the founder of countervailing power theory?
In the 20th century, “Countervailing Power” is a theory of political modification of markets, formulated by American economist John Kenneth Galbraith in his 1952 book American Capitalism.
When did John Kenneth Galbraith write countervailing power?
Modern economies give massive powers to large business corporations to bias this process, and there arise ‘countervailing’ powers in the form of trade unions, citizens’ organizations and so on, to offset business’s excessive advantage. American Capitalism: The Concept of Countervailing Power is a book by John Kenneth Galbraith, written in 1952.
Which is the best description of Countervailing Power?
Countervailing power. Countervailing Power, or countervailence, is the idea in political theory of institutionalized mechanisms that the wielding of power within a polity having two or more centers can, and often does, provide counter-forces that usefully oppose each other. This political organization stands in contrast to polities such as…
What is the role of countervailing power in market failure?
Galbraith highlights the role of “Countervailing Power” in dealing with market failure & outlines its operation at the micro, and at the macro levels. At the micro level, firms might merge or band together to influence the price. Individual wage earners might also combine in unions to influence wage rates.