Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Thursday, October 8, 2009

Buyer Power in International Markets

Posted by D. Daniel Sokol

Horst Raff, Christian-Albrechts-Universitaet zu Kiel and Nicolas Schmitt, Simon Fraser University, explain Buyer Power in International Markets.

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.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/10/buyer-power-in-international-markets.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a5b4b62c970b

Listed below are links to weblogs that reference Buyer Power in International Markets:

Comments

Post a comment