Battigalli, Pierpaolo; Fumagalli, Chiara; Polo, Michele - IGIER (Innocenzo Gasparini Institute for Economic … - 2006
This paper analyses the sources of buyer power and its effect on sellers' investment. We show that a retailer extracts a larger surplus from the negotiation with an upstream manufacturer the more it is essential to the creation of total surplus. In turn, this depends on the rivalry between...