EconPapers    
Economics at your fingertips  
 

On the pro-competitive effects of passive partial backward ownership

Maria Alipranti, Emmanuel Petrakis () and Panagiotis Skartados

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: We consider a vertically related market in which an upstream monopolist supplier trades, via interim observable two-part tariff contracts, with two differentiated goods' downstream Cournot competitors. We show that passive partial backward ownership (PPBO) may be pro-competitive and welfare enhancing. PPBO exacerbates the upstream's commitment problem and yields lower wholesale prices, and higher industry output, consumers surplus, and welfare than in the absence of PPBO.

Keywords: Passive; Partial; Backward; Ownership; Vertical; Relations; Two-Part; Tariffs; Interim; Observable; Contracts (search for similar items in EconPapers)
JEL-codes: D43 L13 L14 (search for similar items in EconPapers)
Date: 2021-09-14
New Economics Papers: this item is included in nep-com, nep-cta, nep-ind, nep-isf and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://e-archivo.uc3m.es/bitstream/handle/10016/33271/we2107.pdf?sequence=1 (application/pdf)

Related works:
Journal Article: On the pro-competitive effects of passive partial backward ownership (2022) Downloads
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:cte:werepe:33271

Access Statistics for this paper

More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda ().

 
Page updated 2023-01-26
Handle: RePEc:cte:werepe:33271