Asymmetric bargaining power in industries leads to market domination and profitability.
The study proves that when one buyer has more power in negotiations, they can use it to get better deals, which helps them dominate the market. The researchers looked at different scenarios and found that this power imbalance leads to higher profits for the stronger buyer. They also showed that in industries with limited production capacity, asymmetry can lead to one company pricing out its competitors. Overall, the findings suggest that in certain situations, having more bargaining power can give a company a significant advantage in the market.