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Derek J Clark and Jean-Christophe Pereau
 
''Vertical integration through Rubinstein bargaining''
( 2012, Vol. 32 No.3 )
 
 
We consider a vertical structure in which an upstream manufacturer bargains with a downstream retailer over the price of an intermediate good. In an alternating offers framework, we show that when the managers of the firms can choose their response time in the negotiation that the solution conforms either to the non-intergrated or fully integrated structure from standard models of successive monopoly.
 
 
Keywords: bargaining, successive monopoly, asymmetric response times.
JEL: C7 - Game Theory and Bargaining Theory:General
L1 - Market Structure, Firm Strategy, and Market Performance: General
 
Manuscript Received : Aug 08 2012 Manuscript Accepted : Sep 09 2012

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