The relative price of locally-produced milk and cheese in rural Paraguay is puzzling, apparently leaving opportunities for arbitrage. Despite requiring additional labor and inputs, the price of cheese per liter of milk is lower than the price of a liter of fluid milk. We propose a framework of...

This paper investigates the pricing and vertical organization of differentiated products under imperfect competition. In a multiproduct context, a Cournot model is used to examine how substitution/complementarity relationships among products and vertical structures can affect the exercise of...

We examine the strategic incentive for gene holders to vertically integrate with seed companies and chemical input companies. With homogeneous conventional seeds, we find that a pure bundling strategy (produce the genetically modified seed only) is dominant. When the gene holder and breeder are,...