to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social … welfare is greater than the marginal cost. This is because with selling constraints, a higher price, despite reducing the … probability of trade (fewer buyers are willing to pay a higher price) increases the value of trade (only trades generating …

applies more generally to duopoly pricing. -- magazine competition ; multi-purchase ; incremental pricing ; content …

This paper studies the welfare consequences of a vertical merger that raises rivals costs when downstream competition … is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can … nevertheless improve welfare if it involves a downstream firm whose cost is low enough . This is because by raising the input price …

The paper employs a standard model of dynamic price competition to study how international principles of value …-added taxation affect the stability of collusive agreements when producers in an international duopoly agree not to export into each …

In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics … the input price. …

Two duopolists compete in price on the market for a homogeneous product. They can ‘profile’ consumers, i.e., identify …

We examine the profitability of cross-ownership in an oligopolistic industry where firms compete as Cournot rivals. We … profitable beyond that participation ratio. This result may be called a cross-ownership paradox, analogous to the merger paradox … over to the case of non-renewable resource industries. The profitability of a symmetric cross-ownership can be positive …

The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear … demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many … recurring to cost savings of merger. Firms interact with each other, with customers, suppliers, their owners, and with …

In this paper we compare the profitability of a merger to the profitability of a partial ownership arrangement and find …

We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy … environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing …. incentives to give subsidies to their local firms. National merger induces more strategic trade policy, whereas international …