We examine the welfare implication of input price discrimination in the vertically related market wherein two downstream firms purchase a cost-saving technology from an outside innovator and input factors from a monopolistic supplier to produce final goods. We show that input price...

This paper explores the relation between the regulation of monopolistic upstream prices and the incentives of a vertically integrated input monopolist to discriminate third parties on the downstream market. Currently, this is an issue in network industries like telecommunications, electricity...

In general, bundles are supplied with discount. Thus bundles are pro-competitive in view of increasing consumers' welfare. On the other hand, bundles are anti-competitive because of leveraging market power from dominant tying-good market to competitive tied-good market, intensifying entry...

This paper analyzes supply tariffs that discriminate between resale in different markets. In a setting with competing retailers that operate in multiple (independent or interdependent) markets, we show that, all else equal, a monopolist supplier wants to discriminate against resale in the market...

This paper examines the output effect of third-degree price discrimination in symmetrically differentiated oligopoly. We find that when the sellers' input costs are chosen endogenously by an upstream supplier with market power, as opposed to being fixed exogenously, long-standing qualitative...

We consider a monopolistic supplier’s optimal choice of wholesale tariffs when downstream firms are privately informed about their retail costs. Under discriminatory pricing, downstream firms that differ in their ex ante distribution of retail costs are offered different tariffs. Under uniform...

This paper studies the welfare effects of wholesale price discrimination between downstream firms operating under different regulatory systems. I model a monopolistic intermediate good market in which production cost differences between downstream firms may be due to regulatory or technological...

We study the optimal contract choice of an upstream monopolist producing an essential input that may sell to two vertically differentiated downstream firms. The upstream supplier can offer an exclusive contract to one of the firms or non-exclusive contracts to both firms. Each of the latter can...

The multiple payments settlement systems available in the United States differ on several dimensions. The Fedwire Funds Service, a utility that operates a U.S. large-value paymentssettlement service, offers the fastest speed of settlement. Recognizing that payments differ in the urgency with...