Mathä, Thomas Y.; Pierrard, Olivier - In: Journal of Economic Dynamics and Control 35 (2011) 8, pp. 1172-1191
Empirical evidence suggests that most firms operate in imperfectly competitive markets. We develop a search-matching model between wholesalers and retailers. Firms face search costs and form long-term relationships. Price bargain results in both wholesaler and retailer mark ups, which depend on...