Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We consider a vertically related market where an upstream monopolist supplier trades, via interim observable two-part tariff contracts, with two differentiated downstream Cournot competitors. We show that passive partial backward ownership (PPBO) is pro-competitive and welfare enhancing. PPBO exacerbates the upstream monopolist’s commitment problem and yields lower wholesale prices, and higher industry output, consumers surplus, and welfare than in the absence of PPBO.