The ambiguous competitive effects of passive partial forward ownership.
In a two‐tier industry with an upstream monopolist supplier and downstream competition with differentiated goods, we show that passive partial forward ownership (PPFO) has ambiguous effects on competition and welfare. When vertical trading is conducted via linear tariffs, PPFO is pro‐competitive and...
| Published in: | Southern Economic Journal Vol. 89; no. 2; pp. 540 - 569 |
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| Main Authors: | , , |
| Format: | Article |
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Wiley-Blackwell
Oct2022
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=159630896&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 159630896 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Oct2022 vid: 89 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 159630896 10.1002/soej.12599 ppf: 540 ppct: 29 formats: fmt: – @attributes: type: T – @attributes: type: P size: 3.1MB tig: atl: The ambiguous competitive effects of passive partial forward ownership. aug: au: Papadopoulos, Konstantinos G. Petrakis, Emmanuel Skartados, Panagiotis affil: School of Economics, Faculty of Economics and Political Sciences, Aristotle University of Thessaloniki, Thessaloniki, Greece Department of Economics, University of Crete, Rethymnon, Greece Departamento de Economa, Universidad Carlos III de Madrid, Madrid, Spain Department of Economics, Athens University of Economics and Business, Athens, Greece su: Tariff Bargaining power Product differentiation sug: subj: Tariff Other federal government public administration Bargaining power Product differentiation keyword: competition linear tariffs partial passive forward ownership two‐part tariffs welfare competition linear tariffs partial passive forward ownership two‐part tariffs welfare ab: In a two‐tier industry with an upstream monopolist supplier and downstream competition with differentiated goods, we show that passive partial forward ownership (PPFO) has ambiguous effects on competition and welfare. When vertical trading is conducted via linear tariffs, PPFO is pro‐competitive and welfare‐increasing. While under two‐part tariffs, it is anti‐competitive and welfare‐decreasing. These hold irrespectively of the degree of product differentiation, the observability or not of contract terms, the mode of downstream competition, and the distribution of bargaining power between firms. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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