The Quasi-Judicial Role of Large Retailers : An Efficiency Hypothesis of their Relation with Suppliers
Abstract[eng] The paper explores the hypothesis that large retailers, such as Wal-Mart and Carrefour, play a quasi-judicial role in their relationships with suppliers, adjusting the terms of trade to on-going changes and sanctioning performance failures. Potential abuse of their position is limited by the need for re-contracting and preserving their reputations. Suppliers renew their confidence in their retailers on a yearly basis, through writing new contracts. This renovation challenges the assertion that suppliers are expropriated by large retailers as a consequence of specific investments. [fre] Le papier explore l'hypothèse que les grands distributeurs, comme Wal Mart et Carrefour, jouent un rôle quasi-judiciaire dans leurs relations avec leurs fournisseurs, en adaptant les termes de leurs échanges aux changements qui surviennent et en sanctionnant les défaillances. Les abus potentiels de cette position sont limités par le besoin qu 'ont les distributeurs de re-contracter et de préserver leurs réputations. Les fournisseurs renouvellent leur confiance dans leurs distributeurs sur une base annuelle en rédigeant de nouveaux contrats. Ce renouvellement des contrats contredit l'hypothèse que les fournisseurs sont expropriés par les grands distributeurs en raison de l'existence d'investissements spécifiques.
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Bibliographic InfoArticle provided by Programme National Persée in its journal Revue d'économie industrielle.
Volume (Year): 92 (2000)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.persee.fr/web/revues/home/prescript/revue/rei
Other versions of this item:
- Benito Arruñada, 2000. "The quasi-judicial role of large retailers: An efficiency hypothesis of their relation with suppliers," Economics Working Papers 445, Department of Economics and Business, Universitat Pompeu Fabra.
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
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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