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Considering a vertical structure with perfectly competitive upstream firms that deliver a homogenous good to a differentiated retail duopoly, we show that upstream fixed costs may help to monopolize the downstream market. We find that downstream prices increase in upstream firms' fixed costs...
Persistent link: https://www.econbiz.de/10010400592
This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar...
Persistent link: https://www.econbiz.de/10011437563
In this paper we apply standard cartel theory to identify the major institutional stabilizers of Germany's area tariff … system of collective bargaining between a single industry union and the industry's employers association. Our cartel analysis … stabilize the labor cartel while other pro-competitive proposals have failed. We argue that the pro-competitive recommendations …
Persistent link: https://www.econbiz.de/10003411719
Persistent link: https://www.econbiz.de/10002128044