Economics, Econometrics and Finance
3 years ago

Big buyers shun cooperation, leaving small buyers to benefit from discounts.

SSRN Electronic Journal
On the Internal and External Stability of Coalitions and Application to Group Purchasing Organizations
Dongshuang Hou, Aymeric Lardon, Hao Sun

Paper Summary

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The article introduces two new ideas about how groups work together, focusing on whether members want to stay or leave based on how it affects their benefits. They apply these ideas to Group Purchasing Organizations, finding that small buyers benefit from working together, while big buyers prefer to stay separate.