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Morgane Guignard – “How Innovation Affects Bargaining and Profit Sharing ? Evidence from the Margarine Market”

June 24, 11:00 am - 12:00 pm

CREST Internal Seminar in Microeconomics : 

Time: 11:0 am – 12:00 pm
Date: 24th June 2019
Place: Room 3049.

Morgane Guignard – “How Innovation Affects Bargaining and Profit Sharing ? Evidence from the Margarine Market

Abstract: We study the impact of innovation on the bargaining power of firms with respect to trading partners. To do so, we use a structural econometric model of demand that accounts for consumer adoption of innovations over time. We develop a supply model of bilateral bargaining between manufacturers and retailers and identify how innovation impacts bargaining position and profit sharing. Using purchase data on margarine purchasers in France from 2001 to 2009, we focus on the introduction of two new products with health attributes (anticholesterol and Omega 3 margarine). Firms strategically introduce these new products to take advantages of the increasing trend in preferences for healthy products as an attribute of differentiation over standard margarine. Preliminary results suggest that the introduction of innovation allows suppliers to obtain a higher share of profits and increase their bargaining ability with respect to retailers.

Organizers:
Alexis Larousse (CREST)

Sponsors:
CREST

Lunch registration:
no registration needed

 

Details

Date:
June 24
Time:
11:00 am - 12:00 pm
Event Category:

Venue

3049

Organizer

Alexis Larousse