Merger and bilateral bargaining : A note
In a context of bilateral bargaining between an upstream supplier and several downstream buyers, this note determines the conditions under which two buyers have an incentive to merge depending on whether (i) the bargaining process is simultaneous or sequential and (ii) the post merger buyer becomes pivotal or not. We also determine conditions under which the players will prefer to bargain simultaneously or in sequence.
ForlagUniversitetet i Tromsø
The University of Tromsø
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