Wednesday, October 17, 2007
Quote of Note: Nicholas Economides
"This paper considers the incentive for non-price discrimination of a monopolist in an input market who also sells in an oligopoly downstream market through a subsidiary. Such a monopolist can raise the costs of the rivals to its subsidiary though discriminatory quality degradation. I find that the monopolist always, even when it is cost-disadvantaged, has the incentive to raise the costs of the rivals to its subsidiary in a discriminatory fashion . . . "
Abstract of "The Incentive for Non-Price Discrimination by an Input Monopolist" by Nicholas Economides, April 1997, link.
Abstract of "The Incentive for Non-Price Discrimination by an Input Monopolist" by Nicholas Economides, April 1997, link.
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