Bargaining power and local heroes
Bargaining Power of retailers is an important aspect of discourse in many industrialized countries, including Germany, Portugal, the UK, and the USA. In Germany the Federal Cartel Office argues that strong bargaining power of retailers presents danger for workable competition in the market. Furthermore, significant bargaining power on the retailer side is often assumed a priori without further investigation. Based on a treatment effect study using difference-in-differences techniques we show, that even small suppliers can have superior bargaining power against retailers depending on their shares on local markets. We do not argue that retailers have no bargaining power at all, but we want to show, that the division of bargaining power between the two sides of the markets varies from product to product and is also a dynamic phenomenon which changes over time. As a result, the a priori assumption of bargaining power of retailers can be very misleading.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: +49 211 81-13820|
Phone: +49 211 81-15494
Fax: +49 211 81-15499
Web page: http://www.dice.hhu.de/en.html
More information through EDIRC
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.:
- Roger R. Betancourt, 2004. "The Economics of Retailing and Distribution," Books, Edward Elgar Publishing, number 3511, April.
- Roman Inderst & Tommaso M. Valletti, 2011.
"Buyer Power And The ‘Waterbed Effect’,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 59(1), pages 1-20, 03.
- Stéphane Caprice & Vanessa von Schlippenbach, 2008. "Competition Policy and Concentration of a Globalized Retail Industry," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 54(3), pages 183-202.
- Wenzel, Tobias, 2010.
"Deregulation of shopping hours: The impact on independent retailers and chain stores,"
DICE Discussion Papers
03, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Tobias Wenzel, 2011. "Deregulation of Shopping Hours: The Impact on Independent Retailers and Chain Stores," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 145-166, 03.
- Smith, Howard & Thomassen, Øyvind, 2012. "Multi-category demand and supermarket pricing," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 309-314.
- von Schlippenbach, Vanessa & Wey, Christian, 2011. "One-stop shopping behavior, buyer power, and upstream merger incentives," DICE Discussion Papers 27, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Stéphane Caprice & Vanessa von Schlippenbach, 2010. "Consumer Shopping Costs as a Cause of Slotting Fees: A Rent-Shifting Mechanism," Discussion Papers of DIW Berlin 1012, DIW Berlin, German Institute for Economic Research.
When requesting a correction, please mention this item's handle: RePEc:zbw:dicedp:87. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.