Experiments of Vertical Integration in Supply Chain

• Main Authors: Wei-Chung Tso, 左惟中
• Other Authors: Chiang-Chang Chou
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/27320073408823601033

碩士 === 中原大學 === 國際經營與貿易研究所 === 101 === The main purpose of this experiment is to explore the issue of double marginalization by thirty-two posted-offer experiments. The outline of this study is mainly with reference to the experiment proposed by Durham, which is considered as a control group for comparison. The difference between this experiment and Durham’s experiments is that this experiment does not add the bonus as compensation, in order to find whether the bonus factor affect the firm’s bid or not. Therefore, in this experiments , two experimental treatments are mainly used to eliminate the double marginalization. First, the downstream market mechanisms from a monopolistic market to a competitive market. Second, divided the market into two parts: with bonus and without bonus as experimental treatments. Bonus has the same effect as compensation in Durham’s experiment. The method of Hypothesis testing is the same as Durham’s method on this experiment. The results are presented whether bonus is given or not or whether market type of downstream is monopolistic or competitive, it is really close to the theoretical value that Durham deduced refer to Spengler’s theory in the last six periods, same as Durham’s experiments. When the market of downstream manufacturers is monopolistic, vertical mark-up behavior occurs no matter bonus is given or not. However, when the market of downstream firms is competitive, double marginalization would be eliminated no matter bonus is given or not. The downstream firms would not cause price distortion in the competitive market, which is different from the result of Durham’s experiments. Regarding the effect of the bonus mechanism for firm’s pricing, bonus mechanism can fully inhibit firm’s pricing in the monopolistic downstream market. But, bonus mechanism can’t inhibit firm’s pricing in the competitive downstream market. In addition, the test results of market efficiency, consumer surplus, and quantity are consistent with Durham's experiments.