An empirical analysis of countervailing power in business-to-business bargaining

Beckert, Walter (2018) An empirical analysis of countervailing power in business-to-business bargaining. Review of Industrial Organization 52 (3), pp. 369-402. ISSN 0889-938X.

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Official URL: https://doi.org/10.1007/s11151-017-9607-7

Abstract

Pricing schemes in business-to-business (B2B) relationships reflect price discrimination and bargaining over rents. Bargaining outcomes are determined by upstream market power and countervailing buyer power downstream. This paper uses an exceptional panel of B2B transactions in the UK brick market to study B2B transaction prices. The empirical analysis identifies three effects on prices: nonlinear volume and freight absorption effects; countervailing power effects arising from buyers' local commercial significance; and competition effects due to the buyers' local potential suppliers. And it shows that small buyers benefit more from competition than large buyers because they are not constrained by the suppliers' capacity.

Metadata

Item Type:	Article
Additional Information:	The final publication is available at Springer via the link above.
School:	Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
Depositing User:	Walter Beckert
Date Deposited:	28 Nov 2017 13:37
Last Modified:	02 Aug 2023 17:37
URI:	https://eprints.bbk.ac.uk/id/eprint/20458

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