Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94018
Authors: 
Reisinger, Markus
Schnitzer, Monika
Year of Publication: 
2008
Series/Report no.: 
SFB/TR 15 Discussion Paper 228
Abstract: 
This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the upstream conditions mainly affect the distribution of profits. We compare the welfare effects of upstream versus downstream deregulation policies and show that the impact of deregulation may be overvalued when ignoring feedback effects from the other market. Furthermore, we analyze how different forms of vertical restraints influence the endogenous market structure and show when they are welfare enhancing.
Subjects: 
Deregulation
Free Entry
Price Competition
Product Differentiation
Successive Oligopolies
Two-Part Tariffs
Vertical Restraints
JEL: 
L13
D43
L40
L50
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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