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Buyer power and exclusion: A progress report

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  • Chambolle, Claire
  • Christin, Clémence
  • Molina, Hugo

Abstract

This article presents recent advances in the analysis of buyer-seller networks, with a particular focus on the role of buyer power on exclusion. We first examine simple vertical structures and highlight that either upstream or downstream firms may have incentives to engage in exclusionary practices to either counteract or leverage buyer power. We then review current work attempting to revisit this issue in “interlocking relationships”. Based on an ongoing research project, we show that the same exclusion mechanisms arise when retail substitution is soft.

Suggested Citation

  • Chambolle, Claire & Christin, Clémence & Molina, Hugo, 2023. "Buyer power and exclusion: A progress report," International Journal of Industrial Organization, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:indorg:v:90:y:2023:i:c:s0167718723000504
    DOI: 10.1016/j.ijindorg.2023.102969
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    More about this item

    Keywords

    Vertical relationships; Buyer power; Distribution network; Exclusion;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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