Caprice, Stéphane; von Schlippenbach, Vanessa; Wey, … - Düsseldorf Institute for Competition Economics (DICE), … - 2014
Considering a vertical structure with perfectly competitive upstream firms that deliver a homogenous good to a differentiated retail duopoly, we show that upstream fixed costs may help to monopolize the downstream market. We find that downstream prices increase in upstream firms' fixed costs...