appropriate inventory management strategies. We develop a Bertrand competition game featuring capacity restrictions, quality … of market friction in price competition, enabling firms to earn higher profits: capacity limitations, quality …

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 the quantity setting downstream firm's production via negative wholesale …