In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to Bertrand competition if the upstream firm subsidises...

This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are reversed in a vertically related market with upstream monopoly and trading via two-part tariffs. In such a market, downstream Cournot competition yields higher output, lower...

This article examines the impact of customer reward programs on the competitive outcome in duopolistic markets. We argue that loyalty discounts for repeat customers constitute a commitment device beneficial to suppliers rather than customers. Analyzing a two-period Bertrand model we show that...

We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate the terms of a two-part tariff contract with an upstream input supplier. In contrast to the traditional belief, we show that the price-setting firm produces a higher output and...

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...

This paper investigates the competition between vertically differentiated platforms in two-sided markets. We assume the presence of two competing platforms producing either higher- or lower-quality devices for consumers. Each platform decides the price of its hardware device for consumers and...

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...

A model of a two-sided market with two horizontally differentiated platforms and multihoming on one side is developed. In contrast to recent contributions, it is shown that platforms do not necessarily generate all revenues on the multihoming side by charging a higher price. Also, whether...

We consider a two-tier industry with an upstream monopolist trading, via interim observable linear tariff contracts, with two differentiated goods downstream of Stackelberg competitors. The upstream monopolist owns a symmetric minority share on both downstream customers, i.e., there is passive...

We investigate the differentiated duopoly and triopoly markets in which firms can choose to strategically delegate when the biased managers hold about the market demand incorrectly under Bertrand competition. Contrast to previous studies under duopoly, one firm chooses delegate, while the other...