Using decentralized Nash bargaining with two-part tariff under mutual outsourcing between symmetric downstream firms, we demonstrate endogenous choice of competition mode with each exclusive channel. Recent market structure captures that the mutual outsourcing has become a common business...

With welfare implication, we analyze the endogenous choice of competition mode where asymmetric retailers for the cost involve in price discrimination and uniform pricing with an upstream input supplier under vertical contracts. In contrast to previous results, we find that under uniform...

In the presence of network externalities, we compare the stability of collusion under Bertrand and Cournot duopoly with differentiated products. Contrast to previous studies, we show that (i) firms have stronger incentive to collude under Bertrand competition than under Cournot competition in...