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Price vs. Quantity Competition in a Vertically Related Market Revisited

Basak, Debasmita; Mukherjee, Arijit - 2016

Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to … Bertrand competition if the upstream firm subsidises the quantity setting downstream firm’s production via negative wholesale …

Persistent link: https://www.econbiz.de/10011584921

Foreign Direct Investment Modes and Local Backward Linkages

Milliou, Chrysovalantou; Pavlou, Apostolis - 2014

We study a multinational enterprise's (MNE) choice of foreign direct investment (FDI) mode in a vertically related market with local input sourcing. We show that the vertical structure of the market and its features play a crucial role for the MNE.s decision: backward linkages, enhanced upstream...

Persistent link: https://www.econbiz.de/10010333403

Vertical Licensing, Input Pricing, and Entry

Bakaouka, Elpiniki; Milliou, Chrysovalantou - 2017

We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...

Persistent link: https://www.econbiz.de/10011615871

Upstream horizontal mergers and efficiency gains

Milliou, Chrysovalantou; Pavlou, Apostolis - 2009

We study upstream horizontal mergers and their potential efficiency gains. We show that an upstream horizontal merger can give rise to two efficiency-enhancing effects when firms trade through two-part tariffs. It increases R&D investments and decreases wholesale prices when downstream...

Persistent link: https://www.econbiz.de/10010265968

Outsourcing without Cost Advantages

Milliou, Chrysovalantou - 2023

This paper explores why competing firms can choose to outsource to an external common supplier that does not have a cost advantage in input production. The supplier, through its contract offers, manages to generate asymmetry, to alter product market competition, and to extract profits from the...

Persistent link: https://www.econbiz.de/10014377619

Vertical Foreign Direct Investment: Make, Sell and (Not) Buy

Milliou, Chrysovalantou; Sandonís, Joel - 2016

According to conventional wisdom, multinational firms undertake vertical FDI in order to take advantage of cross-border factor cost differences and source the inputs from abroad at better terms. Recent empirical findings though document that this is not always the case. We provide theoretical...

Persistent link: https://www.econbiz.de/10011584889

Location of foreign direct investment in vertically related markets

Milliou, Chrysovalantou - 2013

We provide an alternative explanation for the commonly observed FDI in developed countries (DCs) considering a vertically related market structure and endogenizing vertical technology transfer (VTT). We show that even though VTT is more costly in a less developed country (LDC), a multinational...

Persistent link: https://www.econbiz.de/10010291662

Manufacturers Mergers and Product Variety in Vertically Related Markets

Milliou, Chrysovalantou; Sandonis, Joel - 2014

We study final product manufacturers' incentives to introduce new products into the market and how they are affected by a merger among them. We show that when manufacturers distribute their products through multi-product retailers, a manufacturers merger, although it leads to an increase in the...

Persistent link: https://www.econbiz.de/10010398566

Doubling Back on Double Marginalization

Linnemer, Laurent - 2022

literature. In this note, I trace back the origin of the idea to Chapter IX, on complementary goods monopolies, of Cournot (1838 …). Through the years Cournot's contribution remained a reference but ended being viewed as a special case of the bilateral … of Cournot for the simultaneous game and extend it to the sequential game. I also show that prices are usually higher in …

Persistent link: https://www.econbiz.de/10013177565

Market Size and Number of Firms with New Technology

Marjit, Sugata; Dastidar, Krishnendu Ghosh; Das, … - 2022

In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...

Persistent link: https://www.econbiz.de/10013427720

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