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Buyers' Alliances for Bargaining Power |
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| Authors: | Suchan Chae Paul Heidhues |
| Institution: | Rice University Houston, TX 77005; WZB D-10785 Berlin, Germany |
| Abstract: | We provide a novel explanation as to why forming an alliance of buyers (or sellers) across separate markets can be advantageous when input prices are determined by bargaining. Our explanation helps to understand the prevalence of buyer cooperatives among small and medium-sized firms . |
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