Logo
Munich Personal RePEc Archive

Measuring the Welfare of Intermediaries in Vertical Markets

Donna, Javier D. and Pereira, Pedro and Pires, Tiago and Trindade, Andre (2019): Measuring the Welfare of Intermediaries in Vertical Markets.

This is the latest version of this item.

[thumbnail of MPRA_paper_93750.pdf] PDF
MPRA_paper_93750.pdf

Download (1MB)

Abstract

We empirically investigate the welfare of intermediaries in oligopolistic markets, where intermediaries offer additional services. We exploit the unique circumstance that, in our empirical setting, consumers can purchase from manufacturers or intermediaries. We specify an equilibrium model, and estimate it using product-level data. The demand includes consumers with costly search and channel-specific preferences. The supply includes two distribution channels. One features bargaining about wholesale prices between manufacturers and intermediaries, and price competition among intermediaries. The other is vertically integrated. The model is used to simulate counterfactuals, where intermediaries do not offer additional services. We find that intermediaries increase welfare.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.