Vertical Integration and Competition Between Networks

This paper provides a simple model of bargaining and integration within a network and considers how intra-network structure is impacted on by competition between networks. Apart from its analytical tractability, our model demonstrates how integration can be used strategically to redistribute network profits from downstream firms to upstream providers of network services. It also demonstrates that increased inter-network competition can mitigate incentives for inefficient integration.

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Year of publication:	2005
Authors:	Fontenay, Catherine C. de ; Gans, Joshua S.
Published in:	Review of Network Economics. - Vol. 4.2005, 1, p. 4-18
Subject:	vertical integration \| bilateral negotiation \| bargaining power

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005785082