Communication à un séminaire :

Nathalie Lavoie (University of Massachusets), « Buyer Power and Vertically Differentiated Retailers », Agricultural and Food Industrial Organization Seminar, TSE, Toulouse, 4 juin 2012, 11:00-12:30, salle MS 003.
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Résumé

We consider a model of vertical competition where retailers purchase an upstream input from a monopolist and are able to differentiate from each other in terms of quality. Our primary focus is to study the price, quality and welfare effects of introducing a large retailer, such as Costco or a Wal-Mart Supercenter, that is able to obtain lower wholesale prices (i.e., countervailing buyer power). We obtain two main results. First, the store with no buyer power (a “traditional retailer”) responds to the presence of the large retailer by increasing its quality, a finding that is consistent with recent efforts by traditional retailers to enhance consumers’ shopping experience. Second, the presence of a large retailer causes consumer welfare to increase through two different channels: a) the upstream discount obtained by the large retailer is partially passed on to the retail price, and b) a greater quality offered by the traditional retailer. Contrary to conventional wisdom, most of the consumer welfare gains in our model are, at low levels of countervailing power, due to the latter channel. Keywords: buyer power, vertical differentiation, Wal-Mart, waterbed effect

Codes JEL

D43 : Oligopoly and Other Forms of Market Imperfection
L13 : Oligopoly and Other Imperfect Markets
L81 : Retail and Wholesale Trade; Warehousing
M31 : Marketing
Q13 : Agricultural Markets and Marketing; Cooperatives; Agribusiness

Groupe de recherche TSE

Alimentation, agriculture et agro-alimentaire