Two Comments on the Industrial Organisation of Vertically Related Markets
This paper first studies the determination of final consumer price when two successive monopolists bargain over the intermediate goods price. Unlike the conventional double marginalisation result which rests on the (implicit) assumption that the upstream firm has all the bargaining power, it is shown that, as the bargaining power shifts from downstream firm to upstream firm, the equilibrium quantity (price) decreases (increases) continuously from the vertically integrated outcome to the conventional double marginalization outcome. This paper next studies the determination of retail and wholesale prices in successive Cournot oligopolies and generalizes the results of Bresnahan and Reiss (1985) on the ratio of retail to wholesale margins in successive monopolies.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.latrobe.edu.au/economics|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:trb:wpaper:1998.03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Scoglio)The email address of this maintainer does not seem to be valid anymore. Please ask Stephen Scoglio to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.