We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate the terms of a two-part tariff contract with an upstream input supplier. In contrast to the traditional belief, we show that the price-setting firm produces a higher output and...

Purpose - In this paper, the authors study the production and pricing decisions of a remanufacturing supply chain composed of a supplier, an assembler and a remanufacturer, in which the remanufacturing of components requires patent licensing from the supplier. Design/methodology/approach - The...

This article focuses on the strategic behavior of firms in the output and the emissions markets in the presence of market power. We consider the existence of a dominant firm in the permit market and different structures in the output market, including Cournot and two versions of the Stackelberg...

We characterize equilibria of oligopolistic markets where identical firms with constant marginal cost compete à la Cournot. For given maximal willingness to pay and maximal total demand, we first identify all combinations of equilibrium consumer surplus and industry profit that can arise from...