Market structure and bargaining power: A study of three international mineral markets

This paper considers how differences in the structure and arrangements between the international markets for bauxite, iron ore and copper affect the bargaining strength and division of benefits between buyers and sellers. After describing the characteristic features of each market, and noting the absence of appropriate economic theory to disentangle the issue at hand, an attempt is made to clarify the problem by considering the difference between the markets in terms of five factors - degree of concentration, ability of the parties to inflict losses on each other, varying shares of the raw material in final product prices, structure of the market in which the final products are sold, and the process of trade negotiation.