This paper examines the welfare implication of banning price discrimination in the intermediate goods market in which a monopolistic supplier contracts with asymmetric downstream retailers. We demonstrate that the supplier has a strong incentive to manipulate interdependent demand structure...

We examine the welfare implication of input price discrimination in the vertically related market wherein two downstream firms purchase a cost-saving technology from an outside innovator and input factors from a monopolistic supplier to produce final goods. We show that input price...