Antitrust laws in many countries prohibit the setting of differential prices across buyers who compete against each other. In this paper, we consider a setting in which a downstream manufacturer holds non-controlling stakes in its rival and both buy input from an unptream monopolist. We find...

This paper studies third degree price discrimination in a monopolistically competitive market. When the number of firms is fixed, price discrimination raises firm profit and reduces consumer welfare relative to uniform pricing. In the long run, the equilibrium product variety under price...

This paper studies the welfare effects of location space constraints when the duopoly sellers are vertically separated. As the downstream firms respond to higher input prices by locating further away from the center of the market, constraining them to locate within the linear city allows the...