Incentive to encourage downstream competition under bilateral oligopoly

Consider the contracting problem of an input supplier dealing with several firms that compete in an output market. We show that, contrary to the key result of the previous literature, an input supplier's profit can increase with the number of downstream firms if the upstream firm is not a monopolist but instead competes with an alternative inferior supplier.

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Year of publication:	2005
Authors:	Caprice, Stephane
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 12.2005, 9, p. 1-5
Publisher:	AccessEcon
Subject:	bilateral oligopoly

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Extent:	application/pdf
Type of publication:	Article
Classification:	L0 - Industrial Organization. General ; L4 - Antitrust Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005094876