Group bargaining in supply chains

Derek J. Clark () and Jean-Christophe Pereau
Additional contact information
Derek J. Clark: UiT - The Arctic University of Norway

Review of Economic Design, 2021, vol. 25, issue 3, No 1, 138 pages

Abstract: Abstract We consider a vertical supply chain in which a monopoly retailer produces a good by assembling a number of essential components each of which is owned by a monopoly. Rather than making the common assumption that the component price is set in the same way for each owner, we investigate the possibility that the retailer may profit by bargaining with some owners in a group, whilst others set their component price to maximize own profit. Furthermore, component owners can self-select into one of these groups, and the retailer can affect group formation by adjusting the order of negotiations. We present conditions under which the retailer can encourage the formation of a bargaining group, and thereby improve its own and industry profit.

Keywords: Complementary inputs; Bargaining; Supply chain (search for similar items in EconPapers)
JEL-codes: C78 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10058-021-00244-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Group bargaining in supply chains (2021)
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:spr:reecde:v:25:y:2021:i:3:d:10.1007_s10058-021-00244-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10058

DOI: 10.1007/s10058-021-00244-9

Access Statistics for this article

Review of Economic Design is currently edited by Atila Abdulkadiroglu, Fuhito Kojima and Tilman Börgers

More articles in Review of Economic Design from Springer, Society for Economic Design
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().