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Abstract

This paper investigates the implications for international markets of the existence of retailers/wholesalers with market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in autarky, thus reversing the standard effects of trade liberalization. Second, the pro-competitive effects of trade liberalization are weaker under buyer power than under seller power.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 79 (2009)
Issue (Month): 2 (November)
Pages: 222-229
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eee:inecon:v:79:y:2009:i:2:p:222-229

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Web page: http://www.elsevier.com/locate/inca/505552

For corrections or technical questions regarding this item, or to correct its listing, contact: (Jeroen Loos).

Related research

Keywords: Buyer power Retailing International trade;

Other versions of this item:

Find related papers by JEL classification:

• F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
• F15 - International Economics - - Trade - - - Economic Integration
• L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:

1. Horst Raff & Nicolas Schmitt, 2009. "Imports, Pass-Through, and the Structure of Retail Markets," Kiel Working Papers 1556, Kiel Institute for the World Economy.
   
   • Horst Raff & Nicolas Schmitt, 2009. "Imports, Pass-Through, and the Structure of Retail Markets," CESifo Working Paper Series 2817, CESifo Group Munich.
2. Horst Raff & Nicolas Schmitt, 2011. "Manufacturers and Retailers in the Global Economy," Kiel Working Papers 1711, Kiel Institute for the World Economy.
   
   • Horst Raff & Nicolas Schmitt, 2011. "Manufacturers and Retailers in the Global Economy," CESifo Working Paper Series 3508, CESifo Group Munich.
3. Raff, Horst & Schmitt, Nicolas, 2011. "Imports and the structure of retail markets," Economics Working Papers 2011,05, Christian-Albrechts-University of Kiel, Department of Economics.
4. Fabio Musso & Mario Risso & Barbara Francioni, 2011. "Grande distribuzione alimentare e criteri di selezione dei fornitori nella prospettiva dei piccoli e medi produttori," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 0(1), pages 73-92.
   
   • Musso, Fabio & Risso, Mario & Francioni, Barbara, 2010. "Grande distribuzione alimentare e criteri di selezione dei fornitori nella prospettiva dei piccoli e medi produttori
     [Suppliers selction criteria for large retailers: The small and medium manufactu," MPRA Paper 31353, University Library of Munich, Germany, revised 2011.
5. Eckel, Carsten, 2009. "International trade and retailing," BERG Working Paper Series on Government and Growth 63, University of Bamberg, Bamberg Economic Research Group on Government and Growth.
   
   • Carsten Eckel, 2009. "International Trade and Retailing," CESifo Working Paper Series 2597, CESifo Group Munich.
6. Robert Kappel, 2010. "On the Economics of Regional Powers: Comparing China, India, Brazil, and South Africa," GIGA Working Paper Series 145, GIGA German Institute of Global and Area Studies.

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