Retail Mergers , Buyer Power and Product Variety ∗

  title={Retail Mergers , Buyer Power and Product Variety ∗},
  author={Roman Inderst and Greg Sha and {\`E}r},
This paper analyses the impact of retail mergers on product variety. We show that following a merger, a retailer may want to enhance its buyer power vis a vis suppliers by delisting products and committing to a “single-sourcing” purchasing strategy. As we argue, the benefits of such a strategy may be more pronounced in case of cross-border mergers. Moreover, anticipating further concentration in the retail industry, suppliers will strategically choose to produce less differentiated products… CONTINUE READING
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