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Buyer power and category captainship

Author

Listed:
  • Claire C. Chambolle

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

  • Vanessa Schlippenbach

    (DIW Berlin - Deutsches Institut für Wirtschaftsforschung)

  • Pascale Bazoche

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

Abstract

We consider one retailer and two manufacturers that have private information about demand characteristics. To ensure truthful revelation, the retailer provides one of the suppliers, i.e. category captain, with a rst-mover advantage in the negotiations. After the negotiation with the retailer is completed, the category captain reveals the information truthfully. This enables the retailer to use the information in the negotiation with the rival supplier. Accordingly, the retailer and the category captain are able to extract rent from the rival supplier. However, the revelation of information after the rst negotiation weakens the rent-shifting mechanism to the bene t of all fi rms.

Suggested Citation

  • Claire C. Chambolle & Vanessa Schlippenbach & Pascale Bazoche, 2012. "Buyer power and category captainship," Post-Print hal-02810408, HAL.
    • Handle: RePEc:hal:journl:hal-02810408
    as

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