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    Empirical analysis of countervailing power in business-to-business bargaining

    Beckert, Walter (2011) Empirical analysis of countervailing power in business-to-business bargaining. Working Paper. Birkbeck College, University of London, London, UK.

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    This paper provides a comprehensive econometric framework for the empirical analysis of countervailing power. It encompasses the two main features of pricing schemes in business-to-business relationships: nonlinear price schedules and bargaining over rents. Disentangling them is critical to the empirical identification of countervailing power. Testable predictions from the theoretical analysis for a pragmatic reduced form empirical pricing model are delineated. This model is readily implementable on the basis of transaction data, routinely collected by antitrust authorities and illustrated using data from the UK brick industry. The paper emphasizes the importance of controlling for endogeneity of volumes and established supply chains and for heterogeneity across buyers and sellers due to intrinsically unobservable outside options.


    Item Type: Monograph (Working Paper)
    Additional Information: BWPEF 1107
    Keyword(s) / Subject(s): countervailing power, bargaining, nonlinear prices, transaction panel data
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Research Centres and Institutes: Commodities Finance Centre
    Depositing User: Administrator
    Date Deposited: 18 Jan 2013 09:31
    Last Modified: 02 Aug 2023 17:01

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