| Article ID: | iaor2005954 |
| Country: | United Kingdom |
| Volume: | 13 |
| Issue: | 4 |
| Start Page Number: | 731 |
| End Page Number: | 754 |
| Publication Date: | Oct 2004 |
| Journal: | Journal of Economics & Management Strategy |
| Authors: | Chae Suchan, Heidhues Paul |
We provide a novel explanation as to why forming an alliance of buyers (or sellers) across separate markets can be advantageous when input prices are determined by bargaining. Our explanation helps to understand the prevalence of buyer cooperatives among small and medium-sized firms.