Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79730
Authors: 
Greer, Katja
Year of Publication: 
2013
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Vertical Restraints and Retail E13-V3
Abstract: 
This paper studies the impact of a dominant firm's conditional discounts on competitors' learning-by-doing. In a vertical context where a dominant upstream supplier and a competitive fringe sell their products to a single downstream firm, we analyze whether the dominant supplier prefers to off er a discount scheme, as in particular a quantity or market-share discount. In a dynamic setting with complete information and learning-by-doing, short-term market-share discounts and long-run contracts are more pro fitable to the dominant supplier than simple two-part tariff s or quantity discounts. We show that two-part tariff s as well as quantity discounts lead to more learning than market-share discounts, or long-term contracts. Thus, the dominant fi rm's contract choice restricts the competitive fringe's e fficiency gain. Similar results occur for network eff ects.
JEL: 
L42
L13
D43
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.