- Abstract:
-
We study vertical contracting through bargaining between an upstream supplier and downstream retailers. We consider the effect of supplier uncertainty as to final volumes on the efficient bargains struck. Uncertainty causes retail price effects: large buyers wield countervailing power (deliver lower retail prices) if upstream marginal costs are decreasing. If there were no upstream uncertainty, downstream retail prices would be independent of buyer size. With enough uncertainty large buyers h...
Expand abstract - Publisher copy:
- 10.1016/j.ijindorg.2012.07.002
-
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- Journal:
- International Journal of Industrial Organization
- Volume:
- 30
- Issue:
- 6
- Publication date:
- 2012-11-05
- DOI:
- URN:
-
uuid:8de41fcb-2a6e-4027-b1ae-2534a181e528
- Local pid:
- oai:economics.ouls.ox.ac.uk:15451
- Language:
- English
- Copyright date:
- 2012
Journal article
Upstream uncertainty and countervailing power.
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