In a framework with an upstream monopoly and a downstream duopoly, we analyze the impact of convex costs on the downstream level. In constrast to the case of constant marginal costs, vertical integration does not imply complete market foreclosure. While the nonintegrated downstream ¯rm receives a strictly positive amount of the intermediate good, the downstream allocation is ine±cient. However, a parametrized ...
The latest health care reforms in Germany increased the scope for competition in Germany's compulsory health care system. Health insurances can now negotiate bilaterally contracts with service providers as well as so-called rebate contracts with pharmaceutical firms. In addition, health insurances can offer a greater variety of contractual options (returns and allowances) to their customers. In this ...
