A Model of Vertical Oligopolistic Competition

Arbeitspapier

This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the upstream conditions mainly affect the distribution of profits. We compare the welfare effects of upstream versus downstream deregulation policies and show that the impact of deregulation may be overvalued when ignoring feedback effects from the other market. Furthermore, we analyze how different forms of vertical restraints influence the endogenous market structure and show when they are welfare enhancing.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Munich Discussion Paper ; No. 2008-8

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Antitrust Issues and Policies: General ; Regulation and Industrial Policy: General
• Subject: Deregulation ; Free Entry ; Price Competition ; Product Differentiation ; Successive Oligopolies ; Two-Part Tariffs ; Vertical Restraints ; Oligopol ; Wettbewerbsbeschränkung ; Produktdifferenzierung ; Markteintritt ; Deregulierung ; Wohlfahrtsanalyse ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Reisinger, Markus ; Schnitzer, Monika
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
• (where): München
• (when): 2008

Further information

• DOI: doi:10.5282/ubm/epub.3189
• Handle: http://hdl.handle.net/10419/104268
• URN: urn:nbn:de:bvb:19-epub-3189-9
• Last update: 10.03.2025, 11:45 AM CET