Who is Punished Most for Challenging the Status Quo?

Over time, markets evolve into particular structures, with clearly defined roles in terms of who does what in the industry. When a firm ventures beyond these established roles, it often gets punished by its exchange partners. Our interviews in the Champagne grape market, however, suggest that some buyers are penalized more than others in such circumstances. Quantitative analysis confirms that nontraditional buyers receive price penalties for...