In most markets, buyers differ in their ability or willingness to switch supplier. This note proposes a novel industry concentration measure that takes this heterogeneity into account. The index increases the share of captive sales, coincides with Hirschman–Herfindahl Index when none are captive, and ”pure monopoly” value 1 all captive.

The importance of buyer-supplier relations has been recognized by research as well as practice. Information sharing and knowledge exchange have been found to positively impact closer collaboration, increase transparency, and improve perceptions of trust between buyers and sellers. There is however, lesser research about IT as an enabler in the dynamics of buyer-seller relationship management. A...

We present a Theory of Contracts under costly enforcement in the context of a dynamic relationship between an uninformed buyer and a seller who is privately informed on his persistent cost at the outset. Public enforcement relies on remedies for breach. Private enforcement comes from severing relationships. We first characterize aggregate enforcement constraints ensuring that trading partners d...

In this paper we study dynamic strategic bargaining in business-to-business markets wherein a seller and a buyer possess symmetric information and negotiate over the price of a product for which the seller has a limited capacity. Motivated by the microprocessor market, our model offers an explanation for the occasional observations of delayed price agreement in this market, which cannot be expl...

Opportunism a behavior can be found in any relational exchange in many forms. In this respect, opportunistic behavior has been recognized one of the historical factors that have tremendous effects on the relationship development between buyer and seller. A conceptual framework of the research’s main variables is presented, the antecedents which are dependence, formalization, relational norms an...

We experimentally test whether impartial deliberation leads to stronger concern for fairness in bargaining. In the experiment a seller can invest some of his/her time in order to generate potential gains from trade with a buyer. Conditional on investment the seller proposes how to split the gain. The buyer either accepts or rejects the seller's offer. To vary the degree of impartiality, subject...