We examine that each manufacturer decides on whether or not to delegate to its retailer in the presence of network externalities. In this paper, we show a trade-off between competition and network size. Vertical separation has the advantage of softening a retailing competition, but has the...

This book provides an updated overview of the recent progress in the theoretical study of third-degree price discrimination. It is a marketing tactic and is said to be present if the unit price is different across different groups of buyers. Its welfare evaluation is often difficult because it...