Market expansion may harm the supplier in a bilateral monopoly

Noriaki Matsushima and Laixun Zhao

ISER Discussion Paper from Institute of Social and Economic Research, The University of Osaka

Abstract: 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.

Date: 2018-08
New Economics Papers: this item is included in nep-com and nep-ind
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Persistent link: https://EconPapers.repec.org/RePEc:dpr:wpaper:1040

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