Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059357 | Economics Letters | 2013 | 4 Pages |
Abstract
In this paper we show that, in the presence of buyer and seller power, a monopolist can enter into a costly contractual relationship with a low-quality supplier with the sole intention of improving its bargaining position relative to a high-quality supplier, without ever selling the good produced by that firm.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Emanuele Bacchiega, Olivier Bonroy, Rania Mabrouk,