Vertical Restraints in an Manufacturer Duopoly PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Vertical Restraints in an Manufacturer Duopoly PDF full book. Access full book title Vertical Restraints in an Manufacturer Duopoly by Kai-Uwe Kühn. Download full books in PDF and EPUB format.
Author: Kai-Uwe Kühn
Publisher:
ISBN:
Category :
Languages : en
Pages : 56
Get Book Here
Book Description
Author: Kai-Uwe Kühn
Publisher:
ISBN:
Category :
Languages : en
Pages : 56
Get Book Here
Book Description
Author: Kai-Uwe Kühn
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 56
Get Book Here
Book Description
![Vertical Restraints in a Manufacturere [sic] Duopoly PDF](https://books.google.com/books/content/images/frontcover/AG3fMgEACAAJ?fife=w80-h100)
Author: Kai-Uwe Kühn
Publisher:
ISBN:
Category : Duopolies
Languages : en
Pages : 56
Get Book Here
Book Description
Author: Paolo Ramezzana
Publisher:
ISBN:
Category :
Languages : en
Pages : 58
Get Book Here
Book Description
This paper studies the competitive effects of a variety of publicly observable nonlinear contracts and vertical restraints in bilateral duopoly. When suppliers offer menus of contracts and inputs are sufficiently differentiated, there exist equilibria in which both retailers purchase from both suppliers at wholesale prices above marginal cost to soften downstream competition. In these common agency equilibria, vertical restraints such as all-units discounts, market-share requirements and no-steering rules affect upstream competition for marginal sales and lead to higher prices and lower welfare than two-part tariffs. Whereas with sequential contracting the industry monopoly outcome is the unique equilibrium, with simultaneous contracting coordination failures may lead to less profitable equilibria.
Author: Daniel P. O'Brien
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Vertical restraints are contractual arrangements between firms at different levels in a supply chain (e.g., manufacturer and retailer, manufacturer and distributor, distributor and retailer) that are more complex than simple per-unit pricing arrangements. The purpose of this chapter is to provide an overview of the economics of vertical restraints and thereby provide an economic foundation for the antitrust analysis of vertical restraints.The literature on vertical restraints is large. This chapter touches on many of the relevant concepts at a high level, references past work for certain ideas, and focuses in depth on four main issues: (i) the general nature of double marginalization and the benefits of vertical restraints that eliminate it in both single- and multi-product settings; (ii) the welfare effects of vertical restraints that address service externalities; (iii) the implications of bilateral contracting and bargaining for the effects of vertical restraints; and (iv) the effects of anti-steering provisions, a vertical restraint that does not appear explicitly in most textbooks but has been prominent in antitrust cases in the digital age.
Author: David Gilo
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 81
Get Book Here
Book Description
Author: C. Wu
Publisher: Elsevier
ISBN: 1483296164
Category : Business & Economics
Languages : en
Pages : 244
Get Book Here
Book Description
In this text some fundamental issues concerning the strategic impact of vertical structures of firms are discussed in a successive oligopoly model. Vertical integration strategy has been identified as one of the key strategies which determine the success or failure of enterprises. Many studies on vertical integration are based on business experiences and interviews with managers. However, the extensive application of game theory in business economics allows this study on vertical integration to be based on sound theoretic ground. Moreover, the significance of public enterprises in some Western European economies and the trends of economic transition in Eastern Europe justify the efforts to analyse vertical integration issues in the mixed market, which is created by the participation of a public firm into an industry otherwise characterised as a successive oligopoly.
Author: Herbert Hovenkamp
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
The Supreme Court's Leegin decision has now brought the rule of reason to all purely vertical intrabrand distribution restraints. But the rule of reason does not mean per se legality and occasions for anticompetitive vertically imposed restraints may still arise. Of all those that have been suggested the most plausible are vertical restraints imposed at the behest of a powerful dealer or group (cartel) of dealers. Although a vertical distribution restraint resembles a dealer cartel in that both limit intraband competition, a manufacturer restraining the distribution of its product shuns the excess dealer profits a dealer cartel would seek. Accordingly, a knowledgeable and un-coerced manufacturer who restricts rivalry among dealers must do so for some other reason, such as to facilitate dealer services. In fact, however, manufacturers have been known to restrain intrabrand competition - especially through resale price maintenance - not to achieve more effective distribution but rather to appease dealer interests in excess profits. Whatever the social benefits of a distribution restraint that serves a manufacturer's self-interest, a competition-limiting restraint extracted by dealer power can be harmful. Vertical restraints reflecting dealer power could well be ignored by antitrust law if they were rare, insignificant in magnitude, or readily detected and remedied under other branches of antitrust law. But we doubt that dealer power is that rare and are troubled by an apparent history of price-enhancing resale price maintenance for the benefit of dealers. At least some of the claimed justifications for it actually reflect dealer power, and antitrust rules controlling horizontal combinations cannot themselves prevent those distribution restraints that result from the power of a single dealer. Requiring the plaintiff to prove that the challenged restraint is explained solely and exclusively on cartel, dealer power, or other non-efficiency grounds would be an attractive policy option for those who think such instances are rare. This option allows prompt validation of many such restraints. On the other hand, requiring the defenders to offer a plausible and legitimate business reason for every restraint would allow the antitrust tribunal easily to condemn those restraints obviously lacking justification but would complicate many cases in which dealer power is unlikely. Depending on the restraint, challengers might be required to prove specified indicia of dealer power, or, for legally less favored restraints, such power might be presumed subject to rebuttal by disproof of the same specified indicia. In sum, presumptions must be developed that will both clarify and simplify the fact finding process.
Author: Chia-Wen Chen
Publisher:
ISBN: 9781124906683
Category :
Languages : en
Pages :
Get Book Here
Book Description
Vertical restraints between firms, such as exclusive dealing contracts that forbid a dealer from promoting other manufacturers' products, are controversial in competition policy because of their potential anticompetitive effects. This dissertation addresses three issues in competition policy and vertical relationships between firms: (1) what are the effects of exclusive dealing on competitiveness of brands? (2) does exclusive dealing foreclose new entrants out of a market? (3) what is the effect of retail competition on market price in a vertically integrated industry when upstream firms face capacity constraints? Chapter 1 examines the impact of allowing more brands access to exclusive distribution networks on brand and market level outcomes. In the U.S., Anheuser Busch is the dominant firm in the beer industry and has exclusive dealing arrangements with many of its distributors. I looked at a recent beer distribution deal between Anheuser Busch and InBev that moved InBev brands into Anheuser Busch distribution networks. I collected beer distributor data before and after the event and matched them with a panel scanner dataset from a major grocery chain in Northern California. Using a difference-in-differences approach, I compared the changes in InBev market shares in markets in which InBev switched to Anheuser Busch distributors, to the changes in market shares in markets in which InBev switched to Anheuser Busch exclusive distributors. The results suggest that exclusive dealing matters in the beer industry: I find InBev market shares to be higher once allowed access to Anheuser Busch exclusive distribution networks. In addition, I do not find overall market quantity to be larger when more brands have access to Anheuser Busch exclusive networks. Instead, the results show cannibalization effects on existing brands' market share when a distributor acquires more brands. These results are more consistent with an incentive-based explanation for firms preferring exclusive contracts. Chapter 2 examines the effect of exclusive dealing on rival firms' entry decisions. I estimated an entry model of specialty beer producers in Northern California and tested whether exclusive dealing raises a firm's fixed costs. I modeled each firm's entry decision as a static entry game of incomplete information that allows for strategic interactions and employed a new panel scanner dataset from a major grocery chain in Northern California. Given that both firm and location profitability are heterogeneous, I controlled for post-entry demand conditions by estimating the demand for beer using a discrete choice model. Using the demand estimates and the predicted entry probabilities, I recovered a firm's fixed costs using a two-step estimator. I find some spillover effects on specialty beer producers' entry decisions. After taking strategic interactions into account, the results indicate that a firm has higher fixed costs at locations with exclusive distributors. The estimates also show that a firm is less likely to enter a location that is farther from its brewery, has lower expected demand or is smaller in store size. Finally, I implemented counter-factual experiments to study the effect of banning exclusive dealing. The results show that the welfare improvement associated with banning exclusive contracts is very small. Chapter 3 (joint with Christopher R. Knittel) considers a model of oligopolistic competition when upstream firms face capacity constraints. We studied the optimality conditions of upstream firms under vertical separation and vertical integration when firms compete on quantity. We illustrated the properties of the equilibrium wholesale and retail prices when the downstream market becomes less competitive with a numerical example. Using data on gasoline demand and refineries' capacity levels in California, we generated equilibrium wholesale and retail prices when the number of downstream firms varies. We find that whether a higher degree of retail market concentration results in higher retail price depends on market structure and the effectiveness of the capacity constraints. When independent refineries' capacity constraints are binding, the effect of a decrease in the number of independent retailers on retail gasoline price is very small.
Author: Patrick Rey
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 41
Get Book Here
Book Description
