Marius Schwartz

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It is well known that vertical integration can change an upstream producer’s incentive to supply the integrated ...rm’s downstream rivals. However, it has not been noticed that vertical integration also changes these rivals’ incentives to choose suppliers. This paper develops an equilibrium theory of vertical merger that incorporates strategic behaviors in(More)
The No Surcharge Rule (NSR) precludes merchants from charging higher prices to consumers who pay by card instead of other means (‘cash’). We analyze the NSR’s effects when a payment network faces local monopolist merchants. Importantly, end-users’ demand for the merchant’s product is elastic. The NSR raises network profit and harms cash users and merchants,(More)
The no-surcharge rule (NSR) prohibits merchants from charging different prices to consumers that use credit cards instead of cash. We show that, while an NSR raises card company profits, it may reduce both cash and card transactions. If the card company can offer rebates to its cardholders, it will do so. Rebates benefit card users and harm cash users; they(More)
Policymakers generally hope to encourage competition, but often do not agree on what form competition should take. In network industries with high sunk costs and low marginal costs some believe that competition is best encouraged by requiring incumbent firms to allow entrants to use the incumbent’s infrastructure to offer competing services. Others argue(More)
The idea for these remarks was triggered by the ongoing litigation between DuPont and Monsanto involving biotech traits in agriculture, specifically for corn and soybean seeds.1 I am not involved in this litigation and am only peripherally familiar with the issues based on public information, especially DuPont’s counterclaims.2 I will ignore various issues(More)