Overview
Question:
There are several concurrent inquiries into supermarkets in Australia, notably Coles and
Woolworths. See, for example, the ACCC’s ongoing inquiry. Consider one of the
supermarkets, say Coles, negotiating with two different suppliers of products that it
sells: a farmer who grows corn; and Arnotts, the manufacturer of Tim Tams (amongst
other products).
Using the tools of analysis taught in OLET2135, analyse how the negotiations (and the
outcome) would be different (or the same) for the two negotiations. How do you think
consumers will fare in the outcomes in both cases? How would your answer differ if is a
new competitor supermarket (such as Aldi) that enters the market in a significant way,
opening many stores?