We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
UPSTREAM INCENTIVES TO ENCOURAGE DOWNSTREAM COMPETITION IN A VERTICALLY SEPARATED INDUSTRY.
- Authors
SANDONÍS, JOEL; LÓPEZ-CUÑAT, JAVIER M.
- Abstract
We show in this paper that a dominant supplier, under observable two-part tariff contracts and an alternative, less efficient supply of the input, could benefit from more intense competition downstream provided that it has strong enough market power upstream. This implies that the incentives of upstream suppliers to foreclose downstream firms are less important than the previous literature had suggested. In fact, we find that the result also holds under observable linear contracts when we consider free entry in the downstream market.
- Subjects
INDUSTRIES; INCENTIVE grants; MARKET power; WHOLESALE prices; SUPPLIERS
- Publication
Singapore Economic Review, 2018, Vol 63, Issue 3, p619
- ISSN
0217-5908
- Publication type
Article
- DOI
10.1142/S0217590815500903