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Buyer Size and Bargaining Power

Author

Listed:
  • Chipty, T
  • Snyder, C-M

Abstract

The paper examines the conventional wisdom that large buyers pay lower prices to suppliers than do small buyers. In the model, a supplier separately bargains with n buyers. The buyer's size is endogenous since they can merge prior to negotiations with the supplier.

Suggested Citation

  • Chipty, T & Snyder, C-M, 1996. "Buyer Size and Bargaining Power," ISER Discussion Paper 0424, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:0424
    as

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    Citations

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    Cited by:

    1. David Mills, 2007. "Quasi-Partnerships in Distribution," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(3), pages 155-168, November.
    2. David Mills, 2010. "Buyer Power and Industry Structure," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(3), pages 213-225, May.

    More about this item

    Keywords

    BARGAINING;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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