An essential input price that is “too high” relative to the downstream price leads to inefficient foreclosure and one that is “too low” induces the vertically-integrated firm to engage in non-price discrimination. Displacement ratios are used to derive the range of safe harbor...

When parents with concave utility reward good behaviour on the part of their children with a share of the marginal utility they derive from good behaviour, a decrease in good behaviour by kid i causes kid j to increase the amount of good behaviour he/she supplies in equilibrium. This may explain...

The necessary admissible range of subsidy-free prices is bounded from above by the incremental scope economy measure for the service - the difference between total scope economies and the scope economies associated with the complement of the service. These incremental scope economy measures...

We analyze the incentives of a vertically-integrated producer (VIP) to engage in “self-sabotage”.Self-sabotage occurs when a VIP intentionally increases its upstream costs and/or reduces the quality of its upstream product. We identify conditions under which self-sabotage is profitable for...