本文利用一個垂直相關市場模型，來討論在可自由進出的上游產業下，下游市場結構對於中間財訂價以及下游廠商研發行為的影響。本文的發現如下，在上游廠商可自由進出市場的情況下，下游市場競爭程度提高，對中間財的引申需求雖會提高，但中間財價格反而會降低。此外，在可自由進出的上游產業結構下，下游市場的廠商數增加雖會減少個別下游廠商的產量，但個別下游廠商研發量反而有提高的可能，此一發現與傳統文獻的結論有很大的不同。
This paper considers a free entry upstream industry to analyze the impact of a change of downstream market structure on the input price and on the downstream firms R&D incentives. With a free entry upstream industry, a more competitive downstream market increases the derived demand for inputs, but the input price will, instead of increasing, decrease. Furthermore, an especially noteworthy result of this paper, which is in sharp contrast to the implications of the existing literature, is that a more competitive downstream market causes each downstream firm's output to decrease, but may induce each downstream firm to increase R&D.
