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Consumers having outside options are an important continuation for market trading theory. The article discusses the question: allowing consumers to “shop around”, does monopoly power sensitively respond to consumers with or without outside options? The related literatures were summarized and showed that there are three distinct opinions: outside options make the monopoly power more prone to compete; the monopoly power more prone to perfect monopoly level and outside options are not immediately relevant to the final trading. As the time over, monopoly power is significantly reduced; it converges to an intermediate value between monopoly and compete; but the convergence rate is not so fast.

Do Outside Options Reinforce or Weaken the Monopoly Power? - An Experiment Review