This paper studies differential pricing by an upstream monopolist whose cost to supply the intermediate good differs across buyers in the downstream. It is shown that, different from third degree price discrimination based on the downstream firms' cost of transforming the intermediate good into...

This paper examines the effect of private label sold by one of two retailers (the “chain store”) on wholesale prices in the intermediate goods market. Under sym- metric retail costs, the chain store can make the wholesale price lower than its rival (the “local store”) when the private...

This paper examines the output and profit effects of horizontal mergers between upstream firms in intermediate goods markets. We consider market settings in which the upstream firms sell differentiated products to, and negotiate nonlinear supply contracts with, a downstream retail monopolist. If...

This study examines the impact of imported intermediates on plant productivity and the role of plant capability in explaining the heterogeneity of the impact. The study uses a survey database of medium and large Indonesian manufacturing establishments from 2000 to 2015. Imported intermediates...