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I analyse the effects of a downstream merger in a differentiated oligopoly when there is bargaining between downstream … competition is in quantities, upstream agents are independent and bargaining is over a uniform input price, a merger between … output, the standard welfare results are restored: a downstream merger always reduces consumer surplus and overall welfare. …
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This paper investigates the effects of changes in retail market concentration when input prices are negotiated. Results are derived from a model of bilateral Nash-bargaining between upstream and downstream firms which allows for general forms of demand and retail competition. Whether...
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