Non-Discriminatory Pricing, Partial Backward Ownership, and Entry Deterrence
Volume: 70, Pages: 102615 - 102615
Published: May 1, 2020
Abstract
This article demonstrates that entry deterrence can occur when downstream incumbents hold non-controlling ownership shares of a supplier that does not price-discriminate. Such backward ownership implies a rebate on the input price for the incumbents and a competitive disadvantage for downstream entrants. An industry can use non-controlling ownership to change the pricing of a supplier in a way that appears to be accommodating but in fact deters...
Paper Details
Title
Non-Discriminatory Pricing, Partial Backward Ownership, and Entry Deterrence
Published Date
May 1, 2020
Volume
70
Pages
102615 - 102615
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