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A model of franchising competition in locationally differentiated products is constructed. A franchisor (upstream firm) collects a marginal transfer fee per unit of output sold by a franchisee (downstream firm). For example, the marginal transfer fee can be realized as a markup on variable...
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We discuss and evaluate the incentives for vertical expansion and vertical mergers in the payments systems industry paying particular attention to the implications of the existence of network effects in this industry. We assess the incentives of large merchants to extend vertically into payments...
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This paper considers the incentive for non-price discrimination of amonopolist in an input market who also sells in an oligopoly downstreammarket through a subsidiary. Such a monopolist can raise the costs ofthe rivals to its subsidiary though discriminatory quality degradation.I find that the...
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