|Reisinger, Markus; Schnitzer, Monika (2012): Successive Oligopolies with Differentiated Firms and Endogeneous Entry. In: Journal of Industrial Economics, Vol. 60, No. 4: pp. 537-577|
We develop a model of successive oligopolies with endogenous entry, allowing for varying degrees of product differentiation and entry costs in both markets. We show that downstream conditions dominate the overall profitability of the two-tier structure while upstream conditions mainly affect the distribution of profits. We analyze how two-part tariffs and resale price maintenance shape the endogenous market structure and study their welfare effects. In contrast to previous literature, we find that welfare under linear prices can be larger than under twopart tariffs although the latter avoids double marginalization. This is because linear prices induce more downstream market entry.
Economics > Chairs > Seminar for Comparative Economics
Economics > Chairs > Chair of Dynamic Economic Theory (closed)
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:53|
|Last Modified:||29. Apr 2016 09:17|