ARIJIT MUKHERJEE Arijit.Mukherjee@nottingham.ac.uk
Professor of Industrial Economics
Complementary inputs, outsourcing and vertical integration: price versus quantity competition
Mukherjee, Arijit; Senalp, Burcu
Authors
Burcu Senalp
Abstract
We compare the effects of price and quantity competition in an industry with complementary inputs, outsourcing and a vertically integrated firm where vertical integration occurs between a final goods producer and a subset of input suppliers. The profit of the integrated firm and the industry profit are higher under Bertrand competition, the profit of the non-integrated firm is higher under Bertrand competition for high product differentiation, and consumer surplus and welfare are higher under Bertrand competition for low product differentiation. Further, no market foreclosure can be the preferred choice of the vertically integrated firm for any degree of product differentiation.
Citation
Mukherjee, A., & Senalp, B. (in press). Complementary inputs, outsourcing and vertical integration: price versus quantity competition. Manchester School,
Journal Article Type | Article |
---|---|
Acceptance Date | Apr 22, 2024 |
Deposit Date | Apr 29, 2024 |
Journal | Manchester School |
Print ISSN | 1463-6786 |
Electronic ISSN | 1467-9957 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
Keywords | Bertrand; Complementary inputs; Cournot; Foreclosure; Vertical integration |
Public URL | https://nottingham-repository.worktribe.com/output/34321607 |
This file is under embargo due to copyright reasons.
You might also like
Cooperative R&D for a New Product under Convex Production Costs
(2023)
Journal Article
Pioneer, early follower or late entrant: Entry dynamics with learning and market competition
(2023)
Journal Article
Optimal patent licensing—Two or three‐part tariff
(2022)
Journal Article
Downloadable Citations
About Repository@Nottingham
Administrator e-mail: discovery-access-systems@nottingham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search