The ambiguous competitive effects of passive partial forward integration

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dc.contributor.author Papadopoulos, Konstantinos G.
dc.contributor.author Petrakis, Emmanuel
dc.contributor.author Skartados, Panagiotis
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2021-10-01T17:14:15Z
dc.date.available 2021-10-01T17:14:15Z
dc.date.issued 2021-10-01
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/33354
dc.description.abstract In a two-tier industry with an upstream monopolist supplier and downstream competition with differentiated goods, we show that passive partial forward integration (PPFI) has ambiguous effects on competition and welfare. When vertical trading is conducted via linear tariffs, PPFI 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 secrecy of contract terms, the mode of downstream competition, and the distribution of bargaining power between firms.
dc.language.iso eng
dc.relation.ispartofseries Working paper. Economics
dc.relation.ispartofseries 21-09
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Partial Passive Forward Integration
dc.subject.other Two-Part Tariffs
dc.subject.other Linear Tariffs
dc.subject.other Competition
dc.subject.other Welfare
dc.title The ambiguous competitive effects of passive partial forward integration
dc.type working paper
dc.subject.jel D43
dc.subject.jel L13
dc.subject.eciencia Economía
dc.identifier.uxxi DT/0000001926
dc.affiliation.dpto UC3M. Departamento de Economía
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