Problems for the sixth seminar:
Vertical relations and mergers
ECON4820 Strategic competition — Spring semester 2010
Solutions to the problems will be presented Wed 5 May 2010.
Please direct any questions to Geir B. Asheim (Room ES1152, Tel: 228 55498,
e-mail: g.b.asheim@econ.uio.no)
Problem 1 (Vertical externalities)
Tirole Exercises 4.1, 4.3 and 4.6.
Problem 2 (Inability to commit and foreclosure)
Consider the model in Section 2.1 of Rey and Tirole with n downstream
firms. Analyze the case where the upstream firm cannot commit to not offering
secret contracts and where the firms have passive conjectures.
Problem 3 (Mergers)
Exam V2004, available at
www.oekonomi.uio.no/studier/eksamen/tidligere%20eksamensoppgaver/
eksamensoppgaver%20master/econ4820/4820.v04.pdf
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