Aghadadashli, Hamid, Dertwinkel-Kalt, Markus and Wey, Christian (2016). The Nash bargaining solution in vertical relations with linear input prices. Econ. Lett., 145. S. 291 - 295. LAUSANNE: ELSEVIER SCIENCE SA. ISSN 1873-7374
Full text not available from this repository.Abstract
We re-examine the Nash bargaining solution when an upstream and N downstream firms bargain over a linear input price with unobservable contracts. We show that the profit sharing rule is given by a simple and instructive formula which depends on the parties' disagreement payoffs, the profit weights in the Nash-product and the elasticity of derived demand. A downstream firm's profit share increases in the equilibrium derived demand elasticity which in turn depends on the final goods' demand elasticity. (C) 2016 Elsevier B.V. All rights reserved.
Item Type: | Journal Article | ||||||||||||||||
Creators: |
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URN: | urn:nbn:de:hbz:38-268191 | ||||||||||||||||
DOI: | 10.1016/j.econlet.2016.07.008 | ||||||||||||||||
Journal or Publication Title: | Econ. Lett. | ||||||||||||||||
Volume: | 145 | ||||||||||||||||
Page Range: | S. 291 - 295 | ||||||||||||||||
Date: | 2016 | ||||||||||||||||
Publisher: | ELSEVIER SCIENCE SA | ||||||||||||||||
Place of Publication: | LAUSANNE | ||||||||||||||||
ISSN: | 1873-7374 | ||||||||||||||||
Language: | English | ||||||||||||||||
Faculty: | Unspecified | ||||||||||||||||
Divisions: | Unspecified | ||||||||||||||||
Subjects: | no entry | ||||||||||||||||
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Refereed: | Yes | ||||||||||||||||
URI: | http://kups.ub.uni-koeln.de/id/eprint/26819 |
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