This paper considers the incentive for non-price discrimination of a monopolist in an input market who also sells in an oligopoly downstream market through a subsidiary. Such a monopolist can raise the costs of the rivals to its subsidiary though discriminatory quality degradation. I find that...

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...