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| Olga Rozanova |
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| ''The possibility to renegotiate the contracts and the equilibrium mode of competition in vertically related markets'' |
| ( 2017, Vol. 37 No.3 ) |
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| The paper demonstrates that if to allow renegotiation of the contract terms, then the result on profits in Alipranti et al.(2014) may be reversed, that is downstream firms may earn
more under Bertrand competition than under Cournot competition. Furthermore, in equilibrium each downstream firm chooses price as a strategic variable. |
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| Keywords: two-part tariffs, mode of competition, contract renegotiation |
JEL: L2 - Firm Objectives, Organization, and Behavior: General
D4 - Market Structure and Pricing: General |
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| Manuscript Received : Jul 16 2017 | | Manuscript Accepted : Jul 16 2017 |
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