We reconsider the endogenous choice of delegation to a manager by two down-stream firms in both a Cournot and a Bertrand vertical market with network effects. An upstream monopolist charges a two-part tariff for a crucial input. By applying the Nash solution in a centralized bargaining, we show...

We examine that the bilateral supplier affects the incentive contracts that owners of retailers offer their managers. Thus, we compare the two models: (1) decentralized bargaining between manufacturers and retailers including two-part tariff contract (2) linear input pricing without bargaining....

We consider bargaining problems with compact star-shaped choice sets arising from a class of economic bargaining environments. Convex or comprehensive (relative to the disagreement point) problems are star-shaped but not conversely. We characterize single-valued solutions satisfying the Nash...

We consider bargaining problems with compact star-shaped choice sets arising from a class of economic bargaining environments. Convex or comprehensive (relative to the disagreement point) problems are star-shaped but not conversely. We characterize single-valued solutions satisfying the Nash...

We consider a bilateral monopoly with a supplier and a buyer. Their trading terms are determined through negotiations, but affected by the buyer's efforts to search for outside suppliers. We find surprisingly that a market expansion may harm the supplier.

How do incentives to collude depend on how asymmetric firms are? In many markets product quality is an important parameter that determines firms' market strategies. We study collusion in a quality-differentiated duopoly and we adopt a Nash bargaining approach to compute the collusive equilibrium...

I study intermediation in networked markets using a stochastic model of multilateral bargaining in which traders compete on different routes through the network. I characterize stationary equilibrium payoffs as the fixed point of a set of intuitive value function equations and study efficiency...