In political theory, countervailance dates back at least to Medieval times, especially in reformist Roman Catholic and early Protestant movements.
The Conciliar Movement, although ultimately ending in failure to reform the Catholic Church, "raised issues that are fundamental in all domains of social organization, and it contributed to the understanding of the general principle of countervailance, which eventually became the foundation of modern constitutionalism.
"[1] The constitutional organization of government, which implies moderation achieved through countervailing forces, stands in contrast to polities where power is concentrated, unchecked, and can be used despotically.
In the classic liberal economy, goods and services are provided and prices set by free bargaining between isolated individual agents.
According to Galbraith, however, large business corporations wield enormous power to bias market processes in modern economies.