The present paper examines the firms' incentives to adopt a new cost reducing technology in vertically related markets, as well as, the effects of the vertical relations on the firms' timing of adoption. It demonstrates that in vertically related industries, independently of the upstream market...

The present paper compares the Cournot and Bertrand equilibrium outcomes and social welfare in vertically related markets with upstream monopolistic market structure, where the trade between the upstream monopolist and the downstream firms is conducted via two-part tariffs contracts. We show...

In contrast with previous studies we assume no ex-ante commitment over the �price or quantity� type of contract which downstream firms will independently offer consumers in a two-tier oligopoly. Under competing vertical chains, we propose...