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Input Suppliers, Differential Pricing, and Information Sharing Agreements

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  • Anthony Creane

Abstract

It is common for firms to systematically share information with their input suppliers. Although such agreements with horizontal rivals have been analyzed, there has been little work examining vertical sharing, and that analysis has focused on suppliers that set uniform prices. However, there has been a systematic change in the US policy toward vertical relationships in the past decades: both FTC inaction and courts rulings have curtailed the effect of Robinson‐Patman, a law meant to prevent differential pricing. Furthermore, it is not clear if differential pricing reflects the suppliers' or the buyers' power. The interaction of these effects is examined.

Suggested Citation

  • Anthony Creane, 2008. "Input Suppliers, Differential Pricing, and Information Sharing Agreements," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(4), pages 865-893, December.
  • Handle: RePEc:bla:jemstr:v:17:y:2008:i:4:p:865-893
    DOI: 10.1111/j.1530-9134.2008.00198.x
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    File URL: https://doi.org/10.1111/j.1530-9134.2008.00198.x
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    Cited by:

    1. Aditya Jain & Milind Sohoni, 2015. "Should firms conceal information when dealing with common suppliers?," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(1), pages 1-15, February.
    2. Creane, Anthony, 2007. "Productivity information in vertical sharing agreements," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 821-841, August.
    3. Fabio Antoniou & Nikos Tsakiris, 2016. "On the Informational Superiority of Quantities Over Prices in the Presence of an Externality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 227-250, September.
    4. Mark R. Frascatore, 2011. "R&D Cost Sharing along the Supply Chain," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 10(1), pages 1-11, April.

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