Arbeitspapier
Downstream mode of competition with upstream market power
In a two-tier oligopoly, where the downstream firms are locked in pair-wise exclusive relationships with their upstream input suppliers, the equilibrium mode of competition in the downstream market is endogenously determined as a renegotiation-proof contract signed between each downstream firm and its exclusive upstream input supplier. We find that the upstream-downstream exclusive relationships credibly sustain the Cournot (Bertrand) mode of competition in the downstream market, when the goods are substitutes (complements). In contrast to previous studies, this result holds irrespectively of the degree of product differentiation and the distribution of bargaining power between the upstream and the downstream firm, over the pairspecific input price.
- ISBN
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978-3-86304-117-5
- Sprache
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Englisch
- Erschienen in
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Series: DICE Discussion Paper ; No. 118
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Vertical Restraints; Resale Price Maintenance; Quantity Discounts
- Thema
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Oligopoly
Vertical relations
Wholesale prices
Equilibrium mode of competition
- Ereignis
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Geistige Schöpfung
- (wer)
-
Manasakis, Constantine
Vlassis, Minas
- Ereignis
-
Veröffentlichung
- (wer)
-
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
- (wo)
-
Düsseldorf
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Manasakis, Constantine
- Vlassis, Minas
- Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
Entstanden
- 2013