Arbeitspapier

Buyer power and supplier incentives

This paper investigates how the formation of larger buyers affects a supplier's profits and, by doing so, his incentives to undertake non-contractible activities. We first identify two chan-nels of buyer power, which allows larger buyers to obtain discounts. We subsequently exam-ine the effects of buyer power on the supplier's incentives and on social welfare. Contrary to some informal claims in the policy debate on buyer power, we find that the exercise of buyer power - even though reducing supplier's profits- may often increase a supplier's incentive to undertake welfare enhancing activities.

Sprache
Englisch

Erschienen in
Series: WZB Discussion Paper ; No. SP II 2003-05

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Antitrust Issues and Policies: General
Thema
Buyer Power
Investments
Competition Policy

Ereignis
Geistige Schöpfung
(wer)
Inderst, Roman
Wey, Christian
Ereignis
Veröffentlichung
(wer)
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
(wo)
Berlin
(wann)
2003

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Inderst, Roman
  • Wey, Christian
  • Wissenschaftszentrum Berlin für Sozialforschung (WZB)

Entstanden

  • 2003

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