Wholesale prices and Cournot-Bertrand competition

International audienceThis note considers the competing vertical structures framework with Cournot-Bertrand competition downstream. It shows that the equilibrium wholesale price paid by a Cournot (Bertrand)-type retailer is above (below) marginal costs of a corresponding manufacturer. This result contrasts with the one under pure competition downstream (i.e., Cournot or Bertrand), where the wholesale price is set below (above) marginal costs in case of a Cournot (Bertrand) game at the retail level