Market expansion may harm the supplier in a bilateral monopoly

We consider a bilateral monopoly with a supplier and a buyer. Their trading terms are determined through negotiations, but affected by the buyer's efforts to search for outside suppliers. We find surprisingly that a market expansion may harm the supplier.

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Year of publication:	2018
Authors:	Matsushima, Noriaki ; Zhao, Laixun
Publisher:	Osaka : Osaka University, Institute of Social and Economic Research (ISER)
Subject:	Bilateral monopoly \| Nash bargaining \| outside suppliers

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Series:	ISER Discussion Paper ; 1040
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1028388977 [GVK] hdl:10419/197712 [Handle]
Classification:	L14 - Transactional Relationships; Contracts and Reputation; Networks ; L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration
Source:	EconStor

Persistent link: https://www.econbiz.de/10012013651