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Buyer Power in International Markets Author info | Abstract | Publisher info | Download info | Related research | Statistics Horst Raff () (Christian-Albrechts-Universität zu Kiel )
Nicolas Schmitt () (Simon Fraser University )
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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 e¤ects of trade liberalization. Second, the pro-competitive effects of trade liberalization are weaker under buyer power than under seller power.
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Paper provided by Department of Economics, Simon Fraser University in its series Discussion Papers with number
dp07-23.
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Length: 31
Date of creation: Oct 2007Date of revision:
Handle: RePEc:sfu:sfudps:dp07-23Contact details of provider: Postal: Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada Phone: (778)782-3508 Fax: (778)782-5944 Web page: http://www.econ.sfu.ca/ More information through EDIRC
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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
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Keller, Wolfgang & Smarzynska Javorcik, Beata & Tybout, James R, 2006.
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references Cited by : (explanations , 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.)
Horst Raff & Nicolas Schmitt, 2009.
"Imports, Pass-Through, and the Structure of Retail Markets ,"
Kiel Working Papers
1556, Kiel Institute for the World Economy.
[Downloadable!]
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