Avignon, Rémi; Chambolle, Claire; Guigue, Etienne; … - 2025
vertical supply chain. We develop a bilateral monopoly model with bargaining that accommodates upstream monopsony and … willing to trade less. Welfare is maximized when each firm's bargaining power exactly countervails the other's market power …. Otherwise, double marginalization arises in the form of double markdownization under excessive downstream bargaining power, or …