Matsushima, Noriaki; Mizuno, Tomomichi - In: Journal of the Japanese and International Economies 26 (2012) 1, pp. 142-152
Under a simple Cournot model with vertical relations, when downstream firms engage in process R&D, the profits of input suppliers for which upstream competition exists may be larger than those in which each input supplier has a bilateral monopoly relation with its buyer (downstream firm). This...