Effects of customer industry competition on suppliers: Evidence from product market competition shocks

Volume: 114, Issue: 5, Pages: 105788
Published: May 1, 2020
Abstract
null null We examine the effect of increased customer industry competition on relationships with suppliers, using exogenous variation in industry-level tariffs. We find that customers facing significant tariff reductions increase output by increasing product purchases and maintaining longer relationship durations with existing suppliers. These results are concentrated in strategically important suppliers such as those that have stronger prior...
Paper Details
Title
Effects of customer industry competition on suppliers: Evidence from product market competition shocks
Published Date
May 1, 2020
Volume
114
Issue
5
Pages
105788
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