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Oligopolistic Competition Between Intermediaries
Alexei Alexandrov Simon Graduate School of Business, University of Rochester George Deltas University of Illinois at Urbana-Champaign - Department of Economics Daniel F. Spulber Northwestern University - Kellogg School of Management August 31, 2007 Simon School Working Paper No. FR 07-12 Abstract: Firms are intermediaries between input suppliers and consumers. This paper considers the implications of competition between strategic firms that compete in both the input and the output markets, and are differentiated both as employers and as producers. We develop a two-sided market model based on the Salop framework to characterize firm differentiation on the input and output markets. We investigate the implications competition of differentiated intermediaries for oligopoly and matching.
Keywords: Intermediaries, two-sided markets, horizontal differentiation, oligopoly, oligopsony JEL Classifications: L10, L13, D43 Working Paper SeriesDate posted: September 19, 2007 ; Last revised: October 13, 2008Suggested CitationContact Information
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