Price vs. quantity competition in a vertically related market revisited

被引：11
作者：
Basak, Debasmita [1 ]
Mukherjee, Arijit [2 ,3 ,4 ,5 ]
机构：
[1] Swansea Univ, Swansea, W Glam, Wales
[2] Univ Nottingham, Business Sch, Jubilee Campus,Wollaton Rd, Nottingham NG8 1BB, England
[3] CESifo, Munich, Germany
[4] INFER, Munich, Germany
[5] City Univ Hong Kong, GRU, Hong Kong, Peoples R China
来源：
ECONOMICS LETTERS | 2017年 / 153卷
关键词：
Bargaining; Bertrand; Cournot; Two-part tariffs; Vertical pricing; Welfare;
D O I：
10.1016/j.econlet.2017.01.021
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
In a recent paper, Alipranti et al. (2014) show that, in a vertically related market, Cournot competition yields higher social welfare than Bertrand competition if the upstream firm subsidises the downstream firm's production via negative wholesale input prices. However, the assumption of a negative input price is not economically viable as it encourages the downstream firms to buy an unbounded amount of inputs. We show that the welfare ranking is reversed once we introduce a non-negativity constraint on the input prices.(C) 2017 Elsevier B.V. All rights reserved.
引用
收藏
页码：12 / 14
页数：3
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