Too many bargainers spoil the broth: the impact of bargaining on markets with price takers
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 incr...
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| Format: | Working paper |
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University of Oxford
2007
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