Raising rivals' cost through buyer power

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2015
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Haucap, Justus
Wey, Christian
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Economics Letters. Elsevier. 2015, 126, pp. 181-184. ISSN 0165-1765. eISSN 1873-7374. Available under: doi: 10.1016/j.econlet.2014.12.011
Zusammenfassung

We re-examine the view that a ban on price discrimination in input markets is particularly desirable in the presence of buyer power. This argument crucially depends on an inverse relationship between downstream firms’ profits and the uniform input price. Assuming different input efficiencies among downstream firms, we derive a necessary and sufficient condition such that a higher input price benefits a subset of relatively efficient downstream firms. In such instances, consumers may be better off if discriminatory pricing is feasible.

Zusammenfassung in einer weiteren Sprache
Fachgebiet (DDC)
330 Wirtschaft
Schlagwörter
Price discrimination, Buyer power, Raising rivals’ cost
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ISO 690DERTWINKEL-KALT, Markus, Justus HAUCAP, Christian WEY, 2015. Raising rivals' cost through buyer power. In: Economics Letters. Elsevier. 2015, 126, pp. 181-184. ISSN 0165-1765. eISSN 1873-7374. Available under: doi: 10.1016/j.econlet.2014.12.011
BibTex
@article{DertwinkelKalt2015Raisi-53513,
  year={2015},
  doi={10.1016/j.econlet.2014.12.011},
  title={Raising rivals' cost through buyer power},
  volume={126},
  issn={0165-1765},
  journal={Economics Letters},
  pages={181--184},
  author={Dertwinkel-Kalt, Markus and Haucap, Justus and Wey, Christian}
}
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