The consumer minister said the comments would help inform an upcoming report detailing a "strategy for empowering consumers".
In an online post today Davey said his department has met with public bodies, including Consumer Focus, to examine the benefits of collective purchasing.
He said: "As an economist, the principle behind collective purchasing is very clear. it’s an ‘economy of scale’ – the more you sell, the cheaper you can sell it.
"Companies competing for the custom of better informed shoppers will in turn be more innovative, create better products and provide more value for money."
Davey said the benefits of collective purchasing are not just monetary. It also leads to a "greater sense of community cohesion".
He cited an example of a group of people in Maidstone, Kent, who grouped together to buy bulk groceries for the local community.
Davey encourages the public to comment below . The opinions left will influence the spring report, which will also include "some pilot projects that harness advances in technology and digital media to test out our ideas".
Collective purchasing has been in vogue during the recession as people increasingly look for a bargain.
It has led to the success of the social commerce site It works with local businesses to offer discounts on services such as beauty treatments and meals, if enough users pledge to buy them.
Groupon recently announced it has completed a $950m (£610m) round of financing as it prepares to expand globally. Last year Forbes magazine dubbed it the "fastest-growing company ever".
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