Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88908
Authors: 
Haucap, Justus
Heimeshoff, Ulrich
Klein, Gordon J.
Rickert, Dennis
Wey, Christian
Year of Publication: 
2013
Series/Report no.: 
DICE Discussion Paper 107
Abstract: 
Research on bargaining power in vertical relationships is scarce. It remains particularly unclear which factors drive bargaining power between negotiating parties in a vertical structure. We use a demand model where consumer demand determines the total pie of industry profits. Moreover, we apply a bargaining concept on the supply side to analyze how profit is split between retailers and manufacturers. Estimates show that bargaining power can be explained by several decision variables for retailers and manufacturers. Options for both indicate that any analysis of bargaining power has to consider a dynamic view on the relevant parameters.
Subjects: 
Bargaining Power
Buyer Power
Antitrust
Discrete Choice
Demand Estimation
JEL: 
L1
L4
ISBN: 
978-3-86304-106-9
Document Type: 
Working Paper

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