In this paper we study how bargainers impact on markets in which firms set a list price to sell to those consumers who take prices as given. The list price acts as an outside option for the bargainers, so the higher the list price, the more the firms can extract from bargainers. We find that an...

In many markets firms set posted prices which are potentially negotiable.  We analyze the optimal marketing mix of pricing and bargaining when price takers buy at posted prices but bargainers attempt to negotiate discounts.  The optimal bargaining strategy involves the firms offering...

This paper surveys new research concerning bargaining within supply chains and its implications for buyer power.  The paper explores the implications of the research on supermarket supply chains for primary, secondary and private-label branded goods.  The empirical base in support of the...