Nach einem drastischen Einbruch im vergangenen Jahr ziehen die Milchpreise wieder an. Doch auch künftig kann es zu Preiseinbrüchen in der Milchwirtschaft kommen. Zum einen wirken sich im Zuge der fortschreitenden Liberalisierung der Agrarmärkte internationale Marktentwicklungen verstärkt auf...

We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...

This paper examines the role of outside options in a downstream duopoly with exclusive vertical relations as in the Japanese automobile industry. In our setup, the downstream firms have outside options, and two upstream firms with exclusive relations can engage in cost reducing investments. More...

We study the entry timing and location decisions of two exclusive buyer-supplier relationships in a continuous-time spatial competition model. In each relationship, the firms determine their entry timing and location, and negotiate a wholesale price through Nash bargaining. Then, the downstream...

We study upstream horizontal mergers and their potential efficiency gains. We show that an upstream horizontal merger can give rise to two efficiency-enhancing effects when firms trade through two-part tariffs. It increases R&D investments and decreases wholesale prices when downstream...

This paper highlights the strategic role of private quality standards in vertical relations. Considering two symmetric downstream firms that are exclusively supplied by a finite number of upstream firms, we show that there exist asymmetric equilibria in the downstream firms' quality...

This paper studies how investment outcomes in a vertically related industry with a regulated monopolist and downstream competition are affected by diverse regulation imposed investment regimes and the nature of product market competition. We analyze the situation when the regulator determines...