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Buyers’ Alliances for Bargaining Power

  • Suchan Chae
  • Paul Heidhues

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. ZUSAMMENFASSUNG - (Verhandlungsmacht durch Käuferkooperationen) Dieses Papier entwickelt eine neue Erklärung dafür, warum Zusammenschlüsse zwischen Käufern (oder Verkäufern), die in unterschiedlichen Märkten aktiv sind, deren Verhandlungsmacht stärken können. Unser Ansatz kann unter anderem erklären, warum sich kleinere und mittlere Unternehmen oft zu Einkaufsgenossenschaften zusammenschließen.

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Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number SP II 2003-24.

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Length: 42 pages
Date of creation: Dec 2003
Date of revision:
Publication status: Published in the Journal of Economics & Management Strategy , Vol. 13(4), Winter 2004, pp. 731-754.
Handle: RePEc:wzb:wzebiv:spii2003-24
Contact details of provider: Postal: Reichpietschufer 50, 10785 Berlin, Germany
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