The Buyer Power Effect of Retail Mergers: An Empirical Model of Bargaining with Equilibrium of Fear.

We develop a bilateral oligopoly framework with manufacturer‐retailer bargaining to analyze the impact of retail mergers on market outcomes. We show that the surplus division between manufacturers and retailers depends on three bargaining forces and can be interpreted in terms of an "equilibrium of...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 56; no. 2; pp. 194 - 216
Autores principales: Bonnet, Céline, Bouamra‐Mechemache, Zohra, Molina, Hugo
Formato: Artículo
Publicado: Wiley-Blackwell Summer2025
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Buyer Power Effect of Retail Mergers: An Empirical Model of Bargaining with Equilibrium of Fear.
      aug:
        au:
          Bonnet, Céline
          Bouamra‐Mechemache, Zohra
          Molina, Hugo
        affil:
          Toulouse School of Economics, INRAE, University of Toulouse Capitole, Toulouse, France
          Paris‐Saclay Applied Economics, Université Paris‐Saclay, INRAE, AgroParisTech, Palaiseau, France
      su:
        Retail industry
        Negotiation
        Soft drink industry
        Bargaining power
        Mergers & acquisitions
      sug:
        subj:
          Retail industry
          Negotiation
          All other miscellaneous store retailers (except beer and wine-making supplies stores)
          All Other Miscellaneous Store Retailers (except Tobacco Stores)
          All other miscellaneous general merchandise stores
          All Other Specialty Food Stores
          Non-alcoholic beverage merchant wholesalers
          Soft drink and ice manufacturing
          Soft Drink Manufacturing
          Soft drink industry
          Bargaining power
          Mergers & acquisitions
      keyword:
        bargaining
        bilateral oligopoly
        retail mergers
        soft drink industry
        bargaining
        bilateral oligopoly
        retail mergers
        soft drink industry
      ab: We develop a bilateral oligopoly framework with manufacturer‐retailer bargaining to analyze the impact of retail mergers on market outcomes. We show that the surplus division between manufacturers and retailers depends on three bargaining forces and can be interpreted in terms of an "equilibrium of fear". We estimate our framework in the French soft drink industry and find that retailers have greater bargaining power than manufacturers. Using counterfactual simulations, we highlight that retail mergers increase retailers' fear of disagreement relative to that of manufacturers, which weakens their buyer power and leads to higher wholesale and retail prices.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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