Upstream Competition between Vertically Integrated Firms
Marc Bourreau
- Fonction : Auteur
- PersonId : 173894
- IdHAL : marc-bourreau
- ORCID : 0000-0003-3913-3014
- IdRef : 124424929
Résumé
We propose a model of two-tier competition between vertically integrated firms and unintegrated downstream firms. We show that, even when integrated firms compete in prices to offer a homogeneous input, the Bertrand logic may collapse, and the input may be priced above marginal cost in equilibrium. These partial foreclosure equilibria are more likely to exist when downstream competition is fierce or when unintegrated downstream competitors are relatively inefficient. We discuss the impact of several regulatory tools on the competitiveness of the wholesale market.
Domaines
FinanceFormat du dépôt | Notice |
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Type de dépôt | Article dans une revue |
Titre |
en
Upstream Competition between Vertically Integrated Firms
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Résumé |
en
We propose a model of two-tier competition between vertically integrated firms and unintegrated downstream firms. We show that, even when integrated firms compete in prices to offer a homogeneous input, the Bertrand logic may collapse, and the input may be priced above marginal cost in equilibrium. These partial foreclosure equilibria are more likely to exist when downstream competition is fierce or when unintegrated downstream competitors are relatively inefficient. We discuss the impact of several regulatory tools on the competitiveness of the wholesale market.
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Auteur(s) |
Marc Bourreau
1, 2
, Johan Hombert
3
, Jérôme Pouyet
4, 5
, Nicolas Schutz
6
1
Télécom ParisTech
( 300362 )
- 46 rue Barrault 75634 Paris Cedex 13
- France
2
CREST -
Centre de Recherche en Économie et Statistique
( 2579 )
- 5, Avenue Henry Le Chatelier, 91120 Palaiseau
- France
3
GREGH -
Groupement de Recherche et d'Etudes en Gestion à HEC
( 1738 )
- 1, avenue de la Libération 78351 JOUY EN JOSAS CEDEX
- France
4
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
5
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
6
Department of Economics
( 120968 )
- Allemagne
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Comité de lecture |
Oui
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Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Internationale
|
Date de publication |
2011-12
|
Volume |
59
|
Numéro |
4
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Page/Identifiant |
677-713
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classement HEC de la revue |
revue B+
|
Public visé |
Scientifique
|
Sous-type de document pour les Articles |
Research article
|
Version du document |
version éditeur
|
Voir aussi |
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Financement |
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Domaine(s) |
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Indexation contrôlée |
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Mots-clés |
en
Upstream Competition, Vertically Integrated Firms
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DOI | 10.1111/j.1467-6451.2011.00469.x |
ProdINRA | 317370 |
UT key WOS | 000298580700007 |
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