Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 9, 2014 erstellt
Description:
We revisit the classic discussion on the endogenous choice of a price or a quantity contract in a vertically related duopoly with a monopolistic upstream firm. We show, from the perspective of the upstream firm, choosing the price contract is a dominant strategy regardless of the nature of goods. We also show, from the perspective of the downstream firms, that the ranking of profits between Cournot and Bertrand competition in Singh and Vives (1984) is reversed. Thus, in equilibrium, downstream firms face a prisoners' dilemma regardless of the nature of goods