Authors
Roman Inderst, Tommaso M Valletti
Publication date
2011/3
Journal
The Journal of Industrial Economics
Volume
59
Issue
1
Pages
1-20
Publisher
Blackwell Publishing Ltd
Description
When a buyer is able to obtain lower input prices from a supplier, is it possible that other buyers will have to pay more for the same input as a result? Is this bad for consumers? We present a model that analyzes the conditions under which the asymmetric exercise of buyer power can lead to consumer detriment through raising other buyers' wholesale prices (the ‘waterbed effect’).
Total citations
Scholar articles
R Inderst, TM Valletti - The Journal of Industrial Economics, 2011