TY - JOUR
T1 - Price vs. quantity competition in a vertically related market
AU - Alipranti, Maria
AU - Milliou, Chrysovalantou
AU - Petrakis, Emmanuel
PY - 2014/7/1
Y1 - 2014/7/1
N2 - 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.
AB - 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.
KW - Bertrand
KW - Cournot
KW - Two-part tariffs
KW - Vertical relations
UR - http://www.scopus.com/inward/record.url?scp=84901048198&partnerID=8YFLogxK
UR - https://www.sciencedirect.com/science/article/pii/S0165176514001694?via%3Dihub
U2 - 10.1016/j.econlet.2014.05.002
DO - 10.1016/j.econlet.2014.05.002
M3 - Article
AN - SCOPUS:84901048198
SN - 0165-1765
VL - 124
SP - 122
EP - 126
JO - Economics Letters
JF - Economics Letters
IS - 1
ER -