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 …rms 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 …rms can extract from bargainers. We …nd that an increas...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
Department of Economics (University of Oxford)
2007
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