We examine how a downstream merger affects input prices and, in turn, the profitability of such a merger under Cournot competition with differentiated products. Input suppliers can be interpreted as ordinary upstream firms, or trade unions organising workers. If the input suppliers are...

Markets for cash-crops in developing countries are typically characterized by a concentration of buyer power at different levels of the supply chain. For instance, small-scale coffee farmers sell their produce to a middleman, who in turn sells the coffee onward to an exporter, often a foreign...

The purpose of this paper is to test the nature of competition concerning price and capacity setting in the Norwegian airline industry after its deregulation in 1994. Did the two airlines, SAS and Braathens, compete on prices and capacities (competition), collude on prices and capacities...

We present a model of competition between two advertising-financed media firms when consumers dislike advertising. We apply the model to analyze competition between Internet portals and find that equilibrium prices of advertising are higher the less differentiated the portals are perceived to...

The purpose of this article is to analyze how competitive forces may influence the way media firms like TV channels raise revenue. A media firm can either be financed by advertising revenue, by direct payment from the viewers (or the readers, if we consider newspapers), or by both. We show that...