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to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition … firm is better off encouraging competition when the downstream firms have high bargaining power. We derive implications on …This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive …
Persistent link: https://www.econbiz.de/10005497922
to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition … firm is better off encouraging competition when the downstream firms have high bargaining power. We derive implications on …This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive …
Persistent link: https://www.econbiz.de/10010707301
In an industry characterised by secret vertical contracts, we consider a benchmark case where two vertical chains exist … of whether upstream or downstream firms have all the bargaining power. We then analyse two alternative mergers, and show … that a downstream merger (which gives the downstream monopolist all the bargaining power) is more welfare detrimental than …
Persistent link: https://www.econbiz.de/10005697660
For methods of the profit division in the bilateral monopoly of the mine and the power station sug-gested in the first part of this paper the formulae for lignite price and shares in the joint profit of the mine and the power station are calculated. The proposed profit division contain: the...
Persistent link: https://www.econbiz.de/10005836131
business model, and competition, result in the platform allowing one type of customers to participate in the platform for free … by the participants on the platform as well as have heightened focus on non-price competition when the participation for … concern a free platform side where there is no monetary measure of value. Finally, dynamic competition makes the analysis of …
Persistent link: https://www.econbiz.de/10014128700
This paper proposes a dynamic approach to modeling opportunism in bilateral vertical contracting between an upstream monopolist and competing downstream firms. Unlike previous literature on opportunism which has focused on games in which the upstream firm makes simultaneous secret offers to the...
Persistent link: https://www.econbiz.de/10013250915
This paper introduces a notion of partial secrecy in bilateral contracting games between one upstream firm and several competing downstream firms. The supplier’s offer quantities are subject to trembles, and each downstream firm observes a noisy signal about the offer received by its...
Persistent link: https://www.econbiz.de/10014256170
We construct a model of market-share contracts with vertical externalities. When a dominant supplier offers a linear … vertical relation and social welfare. Under market-share contracts, the retailer can commit to increase the sales of goods … in market-share contracts even in the absence of exclusionary effects in the upstream market. We also show that such …
Persistent link: https://www.econbiz.de/10013036198
The application of Nash bargaining solution to profit division in negotiation between opencast lignite mine and power … or competition, rational arguments or rational threats, maximization of joint profits or only their own. …
Persistent link: https://www.econbiz.de/10005260247
all the bargaining power at the production stage, while it vanishes when the buyer and suppliers' weights are balanced … suppliers. Conditional on market foreclosure, the probability that final consumers are harmed is positive only if the buyer has … more bargaining power when selecting suppliers than when negotiating over quantities and intermediate prices. The buyer …
Persistent link: https://www.econbiz.de/10012494786