Showing 1 - 10 of 413
between a manufacturer and a retailer lead to vertical foreclosure, to the detriment of consumers and society. Finally, we …
Persistent link: https://www.econbiz.de/10011084283
We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm contracts with multiple downstream firms. Royalties control competition between own downstream firms...
Persistent link: https://www.econbiz.de/10005067481
This paper considers buyer power in the presence of upstream competition to supply a homogeneous product. A likely consequence of upstream competition is that each supplier is uncertain of its final output, because it does not know how many downstream buyers will select it as a seller. We...
Persistent link: https://www.econbiz.de/10005067532
We consider a vertically related industry and analyze how the total harm due to a price increase upstream is distributed over downstream firms and final consumers. For this purpose, we develop a general model without making specific assumptions regarding demand, costs, or the mode of...
Persistent link: https://www.econbiz.de/10005666424
In this Paper we investigate the impact of vertical mergers on upstream firms’ ability to sustain collusion. We show in a number of models that the net effect of vertical integration is to facilitate collusion. Several effects arise. When upstream offers are secret, vertical mergers facilitate...
Persistent link: https://www.econbiz.de/10005791331
The paper revisits the conventional wisdom according to which vertical restrictions on retail prices help upstream firms to collude. We analyse the scope for collusion with and without resale price maintenance (RPM) when retailers observe local shocks on demand or retail costs. In the absence of...
Persistent link: https://www.econbiz.de/10005792032
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
We model a new effect of exclusivity on non-contractible investments in buyer/seller relationships. By restricting the buyer to purchase from only one seller, exclusivity increases the buyer’s costs of haggling during renegotiation and hence the seller’s relative bargaining power and...
Persistent link: https://www.econbiz.de/10005497871
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
We investigate the robustness of the new foreclosure doctrine and its associated welfare implications to the …
Persistent link: https://www.econbiz.de/10005498007