Price and Quantity Competition under Vertical Pricing
نویسندگان
چکیده
We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate the terms of two-part tariff contract with an upstream input supplier. In contrast to traditional belief, we show that produces higher output earns profit than when bargaining is decentralised. Additionally, both firms produce same output, whereas under centralised.
منابع مشابه
Price-Quantity Competition and Edgeworth Cycles
I consider markets in which eight firms compete deciding simultaneously on price and quantity with a given capacity. I got eight independent experimental data. At any of 65 rounds the same eight firms met each other in the same market. If a firm made high enough losses it went bankrupt and left the market. In this case capacity was distributed among surviving firms following a proportional prof...
متن کاملDynamic Pricing Competition with Strategic Customers Under Vertical Product Differentiation
We consider dynamic pricing competition between two firms offering vertically differentiated products to strategic customers who are inter-temporal utility maximizers. Our model can be viewed as a competitive version of the classical model of Besanko and Winston (1990). We show that there exists a Markov perfect equilibrium (MPE) in mixed strategy in the game. Furthermore, we give a simple cond...
متن کاملPrice-quantity competition with varying toughness
For an industry producing a single homogeneous good, we define and characterize the concept of oligopolistic equilibrium, allowing for a parameterized continuum of regimes with varying competitive toughness. This parameterization will appear to be equivalent to the one used in the empirical literature. The Cournot and the competitive outcomes coincide, respectively, with the softest and the tou...
متن کاملPricing Games under Uncertain Competition
The last decade has seen a tremendous growth in wireless networks, resulting in a proportionate increase in demand for spectrum. But spectrum is limited, which has led to the design of techniques such as Cognitive Radio Technology [2], for using the available spectrum more efficiently. In Cognitive Radio Networks (CRNs), there are two types of spectrum users: (i) a primary user who leases a cer...
متن کاملA Note on Price and Quantity Competition in Differentiated Oligopolies
In this note we show that the results developed in Singh and Vives (1984) are sensitive to the duopoly assumption (Rand Journal of Economics 15, 546-554). If there are more than two firms, prices may be higher under price competition than under quantity competition. This will be the case if quality differences are large and goods are complements. If goods are substitutes, high-quality firms may...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Games
سال: 2023
ISSN: ['2073-4336']
DOI: https://doi.org/10.3390/g14040053