Efeitos estratégicos do Hub & Spoke

Abstract

Hub & Spoke strategies have been studied and investigated by academics as well as national competition authorities in different countries. These practices are defined by triangular schemes where the interaction between the different actors is carried out through an indirect exchange of information, that is, communication through a third-party with which there is a vertical relationship. In order to study the strategic effects that these practices have on the market, we compare the results of two scenarios: scenario with competition à la Cournot and scenario with Hub & Spoke. Using game theory, we defined a model with vertical interaction between a supplier and two retailers. The results suggest that Hub & Spoke practices, under certain assumptions, can make collusion sustainable and improve consumer welfare.

Date of Award	6 Jul 2021
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Mariana Cunha (Supervisor)