Bilateral Monopolies and Incentives for Merger

Henrik Horn and Asher Wolinsky

RAND Journal of Economics, 1988, vol. 19, issue 3, 408-419

Abstract: We analyze a duopoly in which firms acquire inputs through bilateral monopoly relations with suppliers. We combine a bargaining model with a duopoly model to examine how input prices and profits are affected by the structures of the upstream and downstream industries, by the demand relations among the final products, and by the nature of bargaining between suppliers and firms. We find that the implications for the incentives for merger are significantly different from what they would be in an environment in which input prices are not determined in bargaining.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (407)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819882 ... O%3B2-C&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: BILATERAL MONOPOLIES AND INCENTIVES FOR MERGER (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:randje:v:19:y:1988:i:autumn:p:408-419

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().