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We investigate the endogenous determination of contracts in competing vertical chains where upstream and downstream firms bargain first over the type of contract and then over the contract terms. Upstream firms always opt for non-linear contracts, which specify the input quantity and its total...
Persistent link: https://www.econbiz.de/10005123524
How does an upstream firm determine the size of its distribution network, and what is the role of vertical restraints? To address these questions we develop and estimate two models of outlet entry, starting from the basic trade-off between market expansion and fixed costs. In the coordinated...
Persistent link: https://www.econbiz.de/10008468630
inventions. We find that uncertainty about the profitability of investing in new inventions generates a basis for intermediation … of intermediation in innovation. …
Persistent link: https://www.econbiz.de/10005498006
We develop a general theoretical framework of trade on a platform on which buyers and sellers interact. The platform may be owned by a single large, or many small independent or vertically integrated intermediaries. There also may be free entry into the market for platform slots, or platform...
Persistent link: https://www.econbiz.de/10005662172
joint and coordinated efforts by sellers. We show that, in general, for-profit intermediation is not neutral to such … particular, we show that whether for-profit intermediation raises or lowers investment incentives depends on which side of the …
Persistent link: https://www.econbiz.de/10005789005
intermediation on the Internet by allowing registration and transaction prices, and multiple registration. When only registration …
Persistent link: https://www.econbiz.de/10005136667
from trade. Together, these decisions amount to non-monotone participation choices in intermediation: only traders of …
Persistent link: https://www.econbiz.de/10008682883
This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition decreases the downstream industry profit, but improves the...
Persistent link: https://www.econbiz.de/10005497922
This paper examines Norwegian gasoline pump prices using daily station-specific observations from March 2003 to March 2006. Whereas studies that have analyzed similar price cycles in other countries find support for the Edgeworth cycle theory (Maskin and Tirole, 1988), we demonstrate that...
Persistent link: https://www.econbiz.de/10005666514
We use retail transaction prices for a multinational retailer to examine the extent and permanence of violations of the law of one price (LOOP) for identical products sold in a variety of countries. We find median deviations of twenty to fifty percent. The differences are not systematic across...
Persistent link: https://www.econbiz.de/10005497930