This paper analyzes the effect of competition among downstream Žrms on an upstream Žrm’s payoff and on its incentive to integrate vertically when Žrms in both segments negotiate optimal contracts. We argue that as downstream competition becomes more intense, the upstream Žrm obtains a larger share of a smaller downstream industry proŽt. The upstream Žrm may encourage downstream competition (eve...

A downstream firm with countervailing power can extract a reduced price from an input supplier. A waterbed effect occurs if this price reduction leads the input supplier to raise the price that it charges another downstream firm. Policy makers have been concerned that this waterbed effect could undermine downstream competition, and it was considered in detail in the 2008 UK grocery inquiry. Thi...

We analyze a multi-echelon inventory system with inventory stages arranged in series. In addition to traditional forward material flows, used products are returned to a recovery facility, where they can be stored, disposed, or remanufactured and shipped to one of the stages to reenter the forward flow of material. This system combines the key elements of two simpler systems: the series system s...

or equal to Pc > U(O)*‘, where U(O)* ’ IS the propagation speed of shallow-water waves and Ue is determined by Eq. ( 12). The solitary wave is found by solving a forced Korteweg-de Vries equation. The amplitude of the solitary wave is proportional to the upstream velocity and the downstream elevation is inversely proportional to the upstream velocity. A second branch of solutions of the forced ...

Exploration and exploitation constitute two separate, potentially conflicting strategic choices for firms engaged in international strategic alliances. Our empirical study challenges the ambidexterity argument and demonstrates that exploration and exploitation are separate (though not necessarily antithetical) strategies with different antecedents and performance consequences. Our results show ...

Density or gravity currents have been always one of the main causes for sedimentation along many of the dam reservoirs. So controlling this phenomenon is very important for increasing useful life of such reservoirs. In this research study the effect of a combination of rough bed and obstacle on the control of sedimentary density current has been investigated. Experiments were conducted in a til...

In recent years, a number of mergers have occurred in the petroleum industry involving upstream firms that are imperfectly integrated into retail markets. In order to empirically evaluate the competitive effects of such mergers, this paper proposes a structural model of supply and demand that reflects divisions between upstream producers and downstream retailers. Neither downstream costs includ...