Publication
Jun 2008
This paper investigates the implications of the existence of retailers/wholesalers with market power for international markets. The authors show two main results. First, in the presence of buyer power trade liberalization may lead to retail market concentration. The paper argues that due to this concentration retail prices may be higher and welfare may be lower in free trade than in autarky, thus reversing the standard effects of trade liberalization. Second, the authors explain that the pro-competitive effects of trade liberalization are weaker under buyer power than under seller power.
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English (PDF, 34 pages, 370 KB) |
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Author | Horst Raff, Nicolas Schmitt |
Series | Kiel Institute Working Papers |
Issue | 1431 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2008 Kiel Institute for the World Economy |