Price vs. quantity competition in a vertically related market
Chrysovalantou Milliou () and
Emmanuel Petrakis ()
No 146, DICE Discussion Papers from University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are reversed in a vertically related market with upstream monopoly and trading via two-part tariffs. In such a market, downstream Cournot competition yields higher output, lower wholesale prices, lower final prices, higher consumers' surplus, and higher total welfare than Bertrand competition.
Keywords: Cournot; Bertrand; vertical relations; two-part tariffs (search for similar items in EconPapers)
JEL-codes: D43 L13 L14 (search for similar items in EconPapers)
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Journal Article: Price vs. quantity competition in a vertically related market (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:146
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