Downstream firms face prisoner's dilemma, optimal export subsidies under Bertrand competition.
The article explores how companies decide to compete with each other when selling related products. It found that companies usually choose to compete by offering lower prices to attract customers. The study revealed that giving financial help to companies selling at lower prices can be beneficial under this type of competition. Additionally, the research discovered that depending on who gets to pick the competition method (companies making the products or those selling them), different types of competition might happen. This choice affects profits and how well the market works. In some cases, there might be conflicting interests between companies, but in others, they might all benefit. This shows that the way firms compete can play a big role in how well things work in the market.