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Full-Text Articles in Industrial Organization
Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao
Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao
Yong Chao
The distinct element of a three-part tariff, compared with linear pricing or a two-part tariff, is its quantity target within which the marginal price is zero. This quantity target instrument enriches the firm's strategy set in dictating the competition to a specific level, even in the absence of usual price discrimination motive. With general differentiated linear demand system, the competitive effect of a three-part tariff in contrast to linear pricing depends on the degree of substitutability between products: competition is intensified when two products are more differentiated, yet softened when two products are more substitutable.
Freedom To Trade And The Competitive Process, Aaron S. Edlin, Joseph Farrell
Freedom To Trade And The Competitive Process, Aaron S. Edlin, Joseph Farrell
Aaron Edlin
Although antitrust courts sometimes stress the competitive process, they have not deeply explored what that process is. Inspired by the theory of the core, we explore the idea that the competitive process is the process of sellers and buyers forming improving coalitions. Much of antitrust can be seen as prohibiting firms’ attempts to restrain improving trade between their rivals and customers. In this way, antitrust protects firms’ and customers’ freedom to trade to their mutual betterment.