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Buyers' Alliances for Bargaining Power

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  • Suchan Chae
  • Paul Heidhues

Abstract

We provide a novel explanation as to why forming an alliance of buyers (or sellers) across separate markets can be advantageous when input prices are determined by bargaining. Our explanation helps to understand the prevalence of buyer cooperatives among small and medium-sized firms. Copyright Blackwell Publishing 2004.

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Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 13 (2004)
Issue (Month): 4 (December)
Pages: 731-754

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Handle: RePEc:bla:jemstr:v:13:y:2004:i:4:p:731-754

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Citations

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Cited by:
  1. Battigalli, Pierpaulo & Fumagalli, Chiara & Polo, Michele, 2006. "Buyer Power and Quality Improvements," CEPR Discussion Papers 5814, C.E.P.R. Discussion Papers.
  2. Dana, James D., 2012. "Buyer groups as strategic commitments," Games and Economic Behavior, Elsevier, vol. 74(2), pages 470-485.
  3. Inderst, Roman & Wey, Christian, 2007. "Buyer power and supplier incentives," European Economic Review, Elsevier, vol. 51(3), pages 647-667, April.
  4. Johansen, Bjørn Olav, 2012. "The Buyer Power Of Multiproduct Retailers: Competition With One-Stop Shopping," Working Papers in Economics 03/12, University of Bergen, Department of Economics.
  5. Chiara Fumagalli & Massimo Motta, 2008. "Buyers' Miscoordination, Entry and Downstream Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1196-1222, 08.
  6. Chakrabarti, Subhadip & Tangsangasaksri, Supanit, 2011. "Labor unions and Nash bargaining using coalition formation games," Mathematical Social Sciences, Elsevier, vol. 62(1), pages 55-64, July.
  7. Davis, David E., 2011. "Buyer Alliances as Countervailing Power in WIC Infant-Formula Auctions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123863, Agricultural and Applied Economics Association.
  8. Aldo González & Loreto Ayala, 2012. "Does Input Purchase Cooperation Foster Downstream Collusion?," Working Papers wp358, University of Chile, Department of Economics.
  9. Roman Inderst & Christian Wey, 2005. "How Strong Buyers Spur Upstream Innovation," Discussion Papers of DIW Berlin 524, DIW Berlin, German Institute for Economic Research.
  10. Chris Doyle & Martijn A. Han, 2012. "Cartelization Through Buyer Groups," SFB 649 Discussion Papers SFB649DP2012-059, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  11. Alderighi, Marco, 2007. "The role of buying consortia among SMEs in the electricity market in Italy," Energy Policy, Elsevier, vol. 35(6), pages 3463-3472, June.
  12. David Mills, 2013. "Countervailing Power and Chain Stores," Review of Industrial Organization, Springer, vol. 42(3), pages 281-295, May.

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