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Upstream pricing strategies, multiple inputs, and downstream delegation

BUI DANG-LONG

Economic Studies / Estudios de Economia2025https://doi.org/10.4067/s0718-52862025000100005article
ABDC C
Weight
0.50

What the paper says

This paper considers a delegation game between one multi-input firm and one single-input firm engaging in Cournot competition in the downstream market.Both firms purchase a standard input from a core input supplier, and the multi-input firm also needs a supplementary input provided by an independent supplier.I study two input pricing policies of the core input supplier, uniform pricing and third-degree price discrimination, and obtain the following.First, regardless of the upstream pricing strategies, both downstream firms delegate in equilibrium, but contrary to traditional analysis, delegation is mutually profitable.Second, the core input supplier prefers uniform pricing to third-degree price discrimination.Lastly, uniform pricing is more socially desirable than discriminatory pricing.

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Cite this paper

https://doi.org/https://doi.org/10.4067/s0718-52862025000100005

Or copy a formatted citation

@article{bui2025,
  title        = {{Upstream pricing strategies, multiple inputs, and downstream delegation}},
  author       = {BUI DANG-LONG},
  journal      = {Economic Studies / Estudios de Economia},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.4067/s0718-52862025000100005},
}

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Upstream pricing strategies, multiple inputs, and downstream delegation

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.