Buying power and strategic interactions

Can Erutku

Canadian Journal of Economics, 2005, vol. 38, issue 4, 1160-1172

Abstract: This paper shows that buying power at the retail level can lead to a rise in wholesale price. As a result, retailers without buying power may increase their retail price. Nevertheless, total surplus is non-decreasing in the degree of buying power possessed by the `dominant' retailer.

JEL-codes: L13 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (14)

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