Seminar_Buyer Power in International Markets_Horst Raff, University of Kiel.

Title: Buyer Power in International Markets.

Abstract: This paper investigates the implications for international markets of the existence of buyers with market power. Two main results are shown. First, price competition and welfare can be lower in free trade than in autarky because an equilibrium in which some retailers are foreclosed may be easier to sustain in free trade than in autarky. Second, the pro-competitive effects of trade liberalization are weaker under buyer power than they are under seller power.