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- W3122973809 abstract "We re-examine the Nash bargaining solution when an upstream and a downstream firm bargain over a linear input price. 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. Our simple formula generalizes to bargaining with N downstream firms when bilateral contracts are unobservable." @default.
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- W3122973809 date "2016-01-01" @default.
- W3122973809 modified "2023-09-27" @default.
- W3122973809 title "The Nash bargaining solution in vertical relations with linear input prices" @default.
- W3122973809 hasPublicationYear "2016" @default.
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