We analyse the effects of input price discrimination in the canonical model where an upstream monopolist sells to downstream firms with various degrees of efficiency. We first recast a series of existing results within our setting, extending previous findings related to discrimination in...

This paper considers that upstream monopoly firm sets input price discrimination (IPD) or uniform input pricing (UIP) in the quality competition market. The marginal cost is related to product quality. We find: When overall quality is low, the upstream firm will give a lower...

This paper examines the welfare effects of third degree price discrimination by an intermediate good monopolist selling to downstream firms with bargaining power. One of the downstream firms (the "chain store") may have a greater ability than rivals to integrate backward into the supply of the...