Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64661
Authors: 
Beckert, Walter
Year of Publication: 
2009
Series/Report no.: 
cemmap working paper CWP17/09
Abstract: 
This paper provides a comprehensive econometric framework for the empirical analysis of buyer power. It encompasses the two main features of pricing schemes in business-to-business relationships: nonlinear price schedules and bargaining over rents. Disentangling them is critical to the empirical identification of buyer power. Testable predictions from the theoretical analysis are delineated, and a pragmatic empirical methodology is presented. It is readily implementable on the basis of transaction data, routinely collected by antitrust authorities. The empirical framework is illustrated using data from the UK brick industry. The paper emphasizes the importance of controlling for endogeneity of volumes and for heterogeneity across buyers and sellers.
Subjects: 
buyer power
bargaining
nonlinear prices
transaction panel data
JEL: 
D43
L11
L12
L14
L42
C23
C78
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
359.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.