EconPapers    
Economics at your fingertips  
 

Auctions vs. negotiations in vertically related markets

Emanuele Bacchiega, Olivier Bonroy () and Emmanuel Petrakis

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: In a two-tier industry with bottleneck upstream and two downstream firms producing vertically differentiated goods, we identify conditions under which the upstream supplier chooses exclusive or non-exclusive negotiations, or an English auction to sell its essential input. Auctioning off a two-part tariff contract is optimal for the supplier when its bar- gaining power is low and the final goods are not too differentiated. Otherwise, the supplier enters into exclusive or non-exclusive negotiations with the downstream firm(s). Finally, in contrast to previous findings, an auction is never welfare superior to negotiations.

JEL-codes: D43 L13 L14 (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-bec, nep-com, nep-cta, nep-des, nep-mic and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://amsacta.unibo.it/6355/1/WP1145.pdf (application/pdf)

Related works:
Journal Article: Auctions vs. negotiations in vertically related markets (2020) Downloads
Working Paper: Auctions vs. negotiations in vertically related markets (2020)
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:bol:bodewp:wp1145

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().

 
Page updated 2024-05-21
Handle: RePEc:bol:bodewp:wp1145