The bargaining power of one player in the industry relative to another player rests, ultimately, on the refusal to deal with the other player. The credibility and effectiveness with which each player can make this threat determines the balance of power

Question

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The statement is true. The bargaining power of a player in the industry depends on their ability to refuse to deal with another player. This ability is based on the credibility and effectiveness of their threat to withhold business.

The Bargaining Power of One Player in the Industry Relative