Jeon, Doh-ShinIdRefORCIDORCID: https://orcid.org/0000-0002-9381-8412 and Lefouili, YassineIdRefORCIDORCID: https://orcid.org/0000-0003-4966-7212 (2020) Decentralizing Cooperation through Upstream Bilateral Agreements. TSE Working Paper, n. 20-1119, Toulouse

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Abstract

We consider an industry with n≥3 firms owning upstream inputs and interacting noncooperatively in a downstream market. Under general conditions, upstream bilateral agreements giving firms access to one another's input lead to industry profit maximization. This decentralization result applies to various upstream agreements including cross-licensing agreements among patent-holding manufacturers, interconnection agreements among telecommunication companies, interbank payments for ATM networks, and data-sharing agreements among competitors or complementors.

Item Type: Monograph (Working Paper)
Language: English
Date: 27 June 2020
Place of Publication: Toulouse
Uncontrolled Keywords: Bilateral oligopoly, upstream agreement, cooperation
JEL Classification: L13 - Oligopoly and Other Imperfect Markets
L41 - Monopolization; Horizontal Anticompetitive Practices
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 08 Jul 2020 15:36
Last Modified: 30 Sep 2025 07:06
OAI Identifier: oai:tse-fr.eu:124410
URI: https://publications.ut-capitole.fr/id/eprint/35085
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