Merger and bilateral bargaining : A note
Abstract
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.
Publisher
Universitetet i TromsøThe University of Tromsø
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