Antitrust & Competition Policy Blog

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

A Member of the Law Professor Blogs Network

Friday, May 17, 2013

Bargaining power and local heroes

Posted by D. Daniel Sokol

Ulrich Heimeshoff and Gordon J. Klein (both Heinrich-Heine-Universitat Dusseldorf) have a new paper on Bargaining power and local heroes.

ABSTRACT: 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 reta! ilers can be very misleading.

http://lawprofessors.typepad.com/antitrustprof_blog/2013/05/bargaining-power-and-local-heroes.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef017c3898a171970b

Listed below are links to weblogs that reference Bargaining power and local heroes:

Comments

Post a comment