This paper surveys the most recent contributions on the competitive effects of parity provisions in vertical industries. We explain that those effects depend on the scope of parity, the complexity of the vertical supply chain, the business model operated by sellers and distributors, and the...

We examine the effects of a change in the exchange rate on sales and prices in the framework of a two - country, two - commodity duopoly model with joint production. We distinguish two kinds of reaction. When the firm located in the country whose currency depreciates (appreciates) increases...

We examine an international “Rule of Three” (RoT) market that allows within and between countries competition. The addition of a domestic competitor increases the exchange-rate exposure of both competing firms relative to a duopoly, unless the exchange-rate passthrough of one of its rivals...

This paper considers an international oligopoly where firms simultaneously choose both the amount of output produced and the proportion of R&D investment to output. The model captures the links between the exchange rate, market power, innovative activity and price, which are important for the...

We provide a theoretical framework which addresses exchange rate pass-through within the setting of vertically related markets. In particular, foreign firms' price adjustment in response to an exchange rate shock is evaluated. This framework enables us to study the importance of cost effects of...

The article analyses the impact of exchange rate changes on German export and import prices. The analytical framework is a mark-up model which is based on the assumption that the markets under consideration are imperfectly competitive as well as segmented. Hence, firms will no longer set prices...