Retail Mergers, Buyer Power and Product Variety  

Oleh:

Inderst, Roman ; Shaffer, Greg

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 117 no. 516 (Jan. 2007), page 45-67.
Topik: retailers; retail mergers; buyer power; product variety
Fulltext: 45.pdf (212.19KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.24 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

This article analyses the impact of retail mergers on product variety. We show that, following a merger, a retailer may want to enhance its buyer power by committing to a 'single - sourcing' purchasing strategy. Anticipating further concentration in the retail industry, suppliers will strategically choose to produce less differentiated products, which further reduces product variety. If negotiations are efficient, the overall loss in product variety may reduce consumer surplus and total welfare. With linear tariffs, however, there may be a countervailing effect as the more powerful retailer passes on lower prices to final consumers.

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