In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to Bertrand competition if the upstream firm subsidises...

We provide a theoretical justification for bi-sourcing, which refers to the situation where a final goods producer buys an input from an outside supplier and also produces it in-house. Bi-sourcing occurs if the marginal cost of producing the input in-house is higher than the marginal cost of...

We show that if the product market is not very much concentrated, open shop union, where the union density is less than one, may not be a justification for a positive relationship between product market competition and unionized wage, irrespective of the union density, bargaining power of the...

We show that the entry of private profit-maximising firms makes the consumers worse off compared to having a nationalised monopoly. Such entry increases the nationalised firm’s profit, industry profit, and social welfare, at the expense of the consumers. Our result is important for competition...

We provide a new rationale for bi-sourcing, which refers to the situation where a final goods producer buys an input from an outside supplier and also produces it in-house. We also show the effects of the product market competition and the implications of different and common outside input...

It is usually believed that higher competition, implying more active firms, benefits consumers and encourages the antitrust authorities to foster competition. We show that this view can be misleading, and higher competition may actually make the consumers worse-off. We suggest that the antitrust...