{"title":"Vertical cross-ownership, double marginalization, and social welfare","authors":"Leonard F. S. Wang, Qiang Gong, Ji Sun","doi":"10.1111/boer.12431","DOIUrl":null,"url":null,"abstract":"<p>In this paper, we study the impacts of cross-ownership structure on double marginalization problem (DMP) and social welfare under downstream the Bertrand and Cournot competition. We find that in the Bertrand competition, DMP is more serious under backward cross-ownership than under forward cross-ownership. Under forward cross-ownership, because the upstream firm internalizes part of a retailer's profit, it alleviates the DMP. However, for the whole society, forward cross-ownership is beneficial with respect to backward cross-ownership. The mark-up ratio under forward cross-ownership is the largest, followed by that under vertical separation. The lowest one is under backward cross-ownership. The results hold under Cournot competition as well.</p>","PeriodicalId":46233,"journal":{"name":"Bulletin of Economic Research","volume":"76 2","pages":"394-408"},"PeriodicalIF":0.8000,"publicationDate":"2023-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Bulletin of Economic Research","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/boer.12431","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
In this paper, we study the impacts of cross-ownership structure on double marginalization problem (DMP) and social welfare under downstream the Bertrand and Cournot competition. We find that in the Bertrand competition, DMP is more serious under backward cross-ownership than under forward cross-ownership. Under forward cross-ownership, because the upstream firm internalizes part of a retailer's profit, it alleviates the DMP. However, for the whole society, forward cross-ownership is beneficial with respect to backward cross-ownership. The mark-up ratio under forward cross-ownership is the largest, followed by that under vertical separation. The lowest one is under backward cross-ownership. The results hold under Cournot competition as well.
期刊介绍：
The Bulletin of Economic Research is an international journal publishing articles across the entire field of economics, econometrics and economic history. The Bulletin contains original theoretical, applied and empirical work which makes a substantial contribution to the subject and is of broad interest to economists. We welcome submissions in all fields and, with the Bulletin expanding in new areas, we particularly encourage submissions in the fields of experimental economics, financial econometrics and health economics. In addition to full-length articles the Bulletin publishes refereed shorter articles, notes and comments; authoritative survey articles in all areas of economics and special themed issues.
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
