With welfare implication, we analyze the endogenous choice of competition mode where asymmetric retailers for the cost involve in price discrimination and uniform pricing with an upstream input supplier under vertical contracts. In contrast to previous results, we find that under uniform...

We revisit the endogenous choice of price or quantity made by two retailers in a vertical structure with a monopolistic manufacturer under network externalities when the retailers involve in centralized Nash bargaining with the two-part tariff contracts. When comparing integration to separation...

We revisit the classic discussion on the endogenous choice of a price or a quantity contract in a vertically related duopoly with a monopolistic upstream firm. We show, from the perspective of the upstream firm, choosing the price contract is a dominant strategy regardless of the nature of...

In the presence of network externalities, we compare the stability of collusion under Bertrand and Cournot duopoly with differentiated products. Contrast to previous studies, we show that (i) firms have stronger incentive to collude under Bertrand competition than under Cournot competition in...

Using decentralized Nash bargaining with two-part tariff under mutual outsourcing between symmetric downstream firms, we demonstrate endogenous choice of competition mode with each exclusive channel. Recent market structure captures that the mutual outsourcing has become a common business...