Downstream Mixed Duopoly, Vertical Bargaining Contract and Endogenous Choice of Competition Modes

Downstream Mixed Duopoly, Vertical Bargaining Contract and Endogenous Choice of Competition Modes PDF Author: Haitao Qu
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Languages : en
Pages : 0

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Book Description
In this paper, a vertical mixed oligopoly framework is used to select the endogenous competition modes with a two-part tariff input price bargaining. We get the following result: First, the public firm does not have the dominant strategy and the private firm's strictly dominant strategy is price competition; Second, due to that the upstream firm's profit maximization, the public firm choosing quantity competition while the private firm choosing price competition is the subgame perfect Nash equilibrium which is in sharp with Matsumura and Ogawa (2012) and Choi (2012, 2019).