EconPapers    
Economics at your fingertips  
 

Buyer Power and Supplier Incentives

Roman Inderst and Christian Wey ()

No 464, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper argues that - in contrast to an often expressed view - the formation of larger and more powerful buyers need not reduce welfare by stifling suppliers' incentives. If contracts are determined in bilateral negotiations, the presence of larger buyers may both increase suppliers' incentives for product improvement and induce suppliers to choose a more efficient technology. The paper also isolates two different channels by which larger buyers can obtain a discount.

Keywords: Buyer power; Merger; Retailing (search for similar items in EconPapers)
Pages: 27 p.
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.diw.de/documents/publikationen/73/diw_01.c.42834.de/dp464.pdf (application/pdf)

Related works:
Journal Article: Buyer power and supplier incentives (2007) Downloads
Working Paper: Buyer Power and Supplier Incentives (2003) Downloads
Working Paper: Buyer Power and Supplier Incentives (2002) Downloads
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:diw:diwwpp:dp464

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().

 
Page updated 2021-04-15
Handle: RePEc:diw:diwwpp:dp464