Symbiotic Production and Downstream Market Competition
AbstractIt is well known that the double marginalization problem in the vertical relation can be eliminated by collusion, but it is undesirable because of the monopoly pricing outcome. This study addresses the role of downstream market competition under symbiotic production and demonstrates that incorporating different types of competition in product markets will partially eliminate inefficiency caused by double marginalization. It suggests that introducing callback services or internet telephones creates an environment similar to downward market competition in the output market; hence, it is observed that international tariffs are significantly reduced. Copyright International Atlantic Economic Society 2012
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.
Volume (Year): 40 (2012)
Issue (Month): 3 (September)
Contact details of provider:
Postal: Suite 650, International Tower, 229 Peachtree Street, N.E., Atlanta, GA 30303
Phone: (404) 965-1555
Fax: (404) 965-1556
Web page: http://springerlink.metapress.com/link.asp?id=112055
More information through EDIRC
Symbiotic production; Double marginalization; Downstream market competition; L11; L13; L22;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Irmen, Andreas, 1997.
"Mark-up pricing and bilateral monopoly,"
Elsevier, vol. 54(2), pages 179-184, February.
- Andreas IRMEN., 1996. "Mark-Up Pricing and Bilateral Monopoly," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 9622, Université de Lausanne, Faculté des HEC, DEEP.
- Nicholas Economides, 1994.
"Quality Choice and Vertical Integration,"
94-22, New York University, Leonard N. Stern School of Business, Department of Economics.
- Chorng-Jian Liu & Chao-Cheng Mai & Fu-Chuan Lai & Wen-Chung Guo, 2010. "Pollution, Factor Ownerships, and Emission Taxes," Atlantic Economic Journal, International Atlantic Economic Society, vol. 38(2), pages 209-216, June.
- Young, Allan Richard, 1991. "Vertical Structure and Nash Equilibrium: A Note," Journal of Industrial Economics, Wiley Blackwell, vol. 39(6), pages 717-22, December.
- Lam, Pun-Lee, 1997. "Erosion of monopoly power by call-back. Lessons from Hong Kong," Telecommunications Policy, Elsevier, vol. 21(8), pages 693-695, October.
- Economides, Nicholas & Salop, Steven C, 1992. "Competition and Integration among Complements, and Network Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 105-23, March.
- Brueckner, Jan K., 2002.
"Network Structure and Airline Scheduling,"
02-0112, University of Illinois at Urbana-Champaign, College of Business.
- Greenhut, M L & Ohta, H, 1979. "Vertical Integration of Successive Oligopolists," American Economic Review, American Economic Association, vol. 69(1), pages 137-41, March.
- Ingo Vogelsang, 2003. "Price Regulation of Access to Telecommunications Networks," Journal of Economic Literature, American Economic Association, vol. 41(3), pages 830-862, September.
- Wright, Julian, 2002. "Access Pricing under Competition: An Application to Cellular Networks," Journal of Industrial Economics, Wiley Blackwell, vol. 50(3), pages 289-315, September.
- Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
- Sandbach, Jonathan, 1996. "International telephone traffic, callback and policy implications," Telecommunications Policy, Elsevier, vol. 20(7), pages 507-515, August.
- Blair, Roger D & Kaserman, David L, 1987. "A Note on Bilateral Monopoly and Formula Price Contracts," American Economic Review, American Economic Association, vol. 77(3), pages 460-63, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.