This paper investigates the effects of changes in retail market concentration when input prices are negotiated. Results are derived from a model of bilateral Nash-bargaining between upstream and downstream firms which allows for general forms of demand and retail competition. Whether...

We consider a vertically integrated input monopolist supplying to a differentiated downstream rival. With linear input pricing, at the margin the firm unambiguously wants the rival to expand — unlike standard oligopoly with no supply relationship — for either Cournot or Bertrand competition....

We follow the framework in Arya and Mittendorf (2011) but extend their analysis by investigating supplier(s)' equilibrium choices of disclosure or confidentiality regarding their contract terms with the downstream retailers. In the case of a common supplier, we find that the unique SPNE is for...

Full paper is available at: "https://ssrn.com/abstract=3452497" https://ssrn.com/abstract=3452497Supplemental Material to the article "Buyer Alliances in Vertically Related Market". I first develop a model of vertical relationships that provides theoretical grounds for the status quo effect and...

Supplement is available at: "https://ssrn.com/abstract=3452506" https://ssrn.com/abstract=3452506Alliances of buyers to negotiate input prices with suppliers are commonplace. Using pre- and post-alliances data on household purchases of bottled water, I develop a structural model of bilateral...

In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to Bertrand competition if the upstream firm subsidises...

This article discusses the approaches of the European Union (EU) and of the United States (US) to the notions of agreement and concerted practice applied to horizontal collusive consequences of vertical restraints. I conclude that networks of vertical restraints blur the differences between...

Using two-part tariff under mutual outsourcing between symmetric downstream firms, we demonstrate endogenous choice of vertical structure with each exclusive channel. Recent market structure captures that the mutual outsourcing has become a common business practice in technology intensive...

This paper first introduces an approach relying on market games to examine how successive oligopolies do operate between downstream and upstream markets. This approach is then compared with the traditional analysis of oligopolistic interaction in successive markets. The market outcomes resulting...