Tools
Tools
Caprice, Stéphane
, von Schlippenbach, Vanessa and Wey, Christian
(2014)
Supplier Fixed costs and Retail Market Monopolization.
TSE Working Paper, n. 14-524
Preview |
Text
Download (444kB) | Preview |
Official URL : http://tse-fr.eu/pub/28317
Abstract
Considering a vertical structure with perfectly competitive upstream firms that deliver a homogenous good to a differentiated retail duopoly, we show that upstream fixed costs may help to monopolize the downstream market. We find that downstream prices increase in upstream firms'fixed costs when both intra- and interbrand competition exist. Our findings contradict the common wisdom that fixed costs do not affect market outcomes.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | July 2014 |
| Uncontrolled Keywords: | Fixed Costs, Vertical Contracting, Monopolization |
| JEL Classification: | L13 - Oligopoly and Other Imperfect Markets L14 - Transactional Relationships; Contracts and Reputation; Networks L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 16 Mar 2015 14:48 |
| Last Modified: | 02 Apr 2021 15:49 |
| OAI Identifier: | oai:tse-fr.eu:28317 |
| URI: | https://publications.ut-capitole.fr/id/eprint/16531 |
