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A Primer on Bargaining: How Mergers May Affect Negotiated Prices

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In an article recently published in The Antitrust Source, titled “A Primer on Bargaining: How Mergers May Affect Negotiated Prices,” Analysis Group Managing Principal Dov Rothman and Manager David Toniatti provide a primer on how economists approach bargaining. The authors describe a classic framework and use the framework to discuss how mergers of suppliers, mergers of buyers, and vertical mergers may affect negotiated prices. They then illustrate the practical application of this framework to each type of merger in the context of shoe suppliers and retailers, hospitals and insurance providers, and video content providers and distributors.