Profit-raising Entry in Vertically Related Markets

被引：8
|
作者：
Wang, Leonard F. S. [1 ]
Lee, Jen-yao [2 ]
机构：
[1] Natl Univ Kaohsiung, Dept Appl Econ, 700,Kaohsiung Univ Rd, Kaohsiung 811, Taiwan
[2] Natl Kaohsiung Univ Appl Sci, Dept Int Business, Kaohsiung, Taiwan
来源：
MANAGERIAL AND DECISION ECONOMICS | 2015年 / 36卷 / 06期
关键词：
D O I：
10.1002/mde.2677
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We extend the standard vertical oligopoly model to allow for free entry in the upstream sector, and research and development with knowledge spillover in the downstream sector. The fact that an increase in the number of firms lowers industry profit is the common wisdom that may not hold in vertical structure of production. We provide a complementary reasoning and find that aggregate downstream profit can increase with downstream entry when the knowledge spillover effect and the entry cost are moderate. Copyright (C) 2014 John Wiley & Sons, Ltd.
引用
收藏
页码：401 / 407
页数：7
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