
In this paper we show that, in the presence of buyer and seller power, a monopolist can enter into a costly contractual relationship with a low-quality supplier with the sole intention of improving its bargaining position relative to a high-quality supplier, without ever selling the good produced by that firm.
L12, L13, L14, vertical relationships, 330, ddc:330, vertical product differentiation, MONOPOLY;VERTICAL PRODUCT DIFFERENTIATION;VERTICAL RELATIONSHIPS, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, MONOPOLY VERTICAL PRODUCT DIFFERENTIATION VERTICAL RELATIONSHIP, SECS-P/01 Economia politica, monopoly, Quaderni - Working Paper DSE, MONOPOLY; vertical product differentiation; VERTICAL RELATIONSHIPS, Special types of economic markets (including Cournot, Bertrand), Monopoly; Vertical product differentiation; Vertical relationships, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, jel: jel:L12, jel: jel:L13, jel: jel:L14
L12, L13, L14, vertical relationships, 330, ddc:330, vertical product differentiation, MONOPOLY;VERTICAL PRODUCT DIFFERENTIATION;VERTICAL RELATIONSHIPS, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, MONOPOLY VERTICAL PRODUCT DIFFERENTIATION VERTICAL RELATIONSHIP, SECS-P/01 Economia politica, monopoly, Quaderni - Working Paper DSE, MONOPOLY; vertical product differentiation; VERTICAL RELATIONSHIPS, Special types of economic markets (including Cournot, Bertrand), Monopoly; Vertical product differentiation; Vertical relationships, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, jel: jel:L12, jel: jel:L13, jel: jel:L14
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