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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.

Suggested Citation

  • Suchan Chae & Paul Heidhues, 2004. "Buyers' Alliances for Bargaining Power," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 731-754, December.
    • Handle: RePEc:bla:jemstr:v:13:y:2004:i:4:p:731-754
    DOI: 10.1111/j.1430-9134.2004.00030.x
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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