This paper studies the impact of buyer power on dynamic efficiency. We consider a bargaining model in which buyer power arises endogenously from size and may impact on a supplier's incentives to invest in lower marginal cost. We challenge the view frequently expressed in policy circles that the...

This paper examines how delivery tariffs and private quality standards are determined in vertical relations that are subject to asymmetric information. We consider an infinitely repeated game where an upstream firm sells a product to a downstream firm. In each period, the firms negotiate a...

Procurement within the NHS is attracting increasing research and policy interest. However, most of the emphasis has been on the buyer (the NHS), with less attention paid to the behaviour of suppliers (often pharmaceutical companies). For medical devices very little is publicly documented about...

Research on bargaining power in vertical relationships is scarce. It remains particularly unclear which factors drive bargaining power between negotiating parties in a vertical structure. We use a demand model where consumer demand determines the total pie of industry profits. Moreover, we apply...

This paper analyzes the strategic use of bilateral supply contracts in sequential negotiations between one manufacturer and two differentiated retailers. Allowing for general contracts and retail bargaining power, I show that the first contracting parties have incentives to manipulate their...

This paper studies how a retailer decides the length of product line in a vertically related industry. We study a market with two product varieties. Each retailer decides the number of varieties it procures from an upstream manufacturer. The manufacturer may open an online store and encroach on...

We consider a downstream oligopoly model with one dominant and several fringe retailers, who purchase a manufacturing product from a monopoly supplier. We then examine how the supplier's outside option influences the relation between the dominant retailer's bargaining power and the equilibrium...

Der angekündigte mehrheitliche Verkauf des Discounters "Plus" würde der Konzentration im deutschen Einzelhandel einen neuen Schub verleihen. Die oft vorgebrachte These, dass ein Ausscheiden kleinerer Wettbewerber langfristig auch den Konsumenten schadet, ist allerdings rein spekulativ. Dieser...

Die Konzentration im deutschen Lebensmitteleinzelhandel schreitet weiter voran und rückt das Thema Nachfragemacht mehr und mehr in den Fokus wettbewerbspolitischer Diskussionen. Im Gegensatz zur Angebotsmacht liegen gesicherte empirische Erkenntnisse über das Vorhandensein, das Ausmaß und die...