Two-Sided Market Power in Firm-to-Firm Trade
Vanessa Alviarez,
Michele Fioretti,
Ken Kikkawa and
Monica Morlacco
No 31253, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
This paper develops a theory of bargaining in firm-to-firm trade with two-sided market power. The framework accommodates flexible market structures, yielding analytical expressions for pair-specific markups and pass-through elasticities. In U.S. import data, we estimate strong importer bargaining power and an upward-sloping export supply curve, consistent with oligopsony power. Pass-through of the 2018 tari!s in firm-to-firm relationships is incomplete, in contrast to product-level studies, primarily due to exporter cost reductions driven by falling demand from dominant buyers. Our study highlights how bargaining and network rigidities shape price outcomes, with implications for markup dispersion and shock propagation in global value chains.
JEL-codes: F12 L14 (search for similar items in EconPapers)
Date: 2023-05
New Economics Papers: this item is included in nep-com, nep-ind and nep-int
Note: ITI
References: Add references at CitEc
Citations: View citations in EconPapers (10)
Downloads: (external link)
http://www.nber.org/papers/w31253.pdf (application/pdf)
Related works:
Working Paper: Two-Sided Market Power in Firm-to-Firm Trade (2023) 
Working Paper: Two-Sided Market Power in Firm-to-Firm Trade (2022) 
Working Paper: Two-Sided Market Power in Firm-to-Firm Trade (2022) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:31253
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31253
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().