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Title:Buyer power in international markets PDF Logo
Authors:Raff, Horst
Schmitt, Nicolas
Issue Date:2009
Series/Report no.:CESifo working paper 2755
Abstract:This paper investigates the implications for international markets of the existence of retailers/wholesalers with market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in autarky, thus reversing the standard effects of trade liberalization. Second, the pro-competitive effects of trade liberalization are weaker under buyer power than under seller power.
Subjects:buyer power
retailing
international trade
JEL:F12
F15
L13
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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