Commitments and Contests: a Game-Theoretic Perspective on Japanese Vertical Relationships.

Various arrangements in vertical relationships have evolved in different countries to attain efficient trading relationships. Vertical relationships in Japan can be identified to have distinctive characteristics in several aspects compared with those in other countries. This study is a comprehensive understanding of Japanese vertical relationships based on the economic theory, particularly game theory and various empirical findings. Insights on the efficiency and governance mechanisms of the vertical relationships can be gained by investigating various arrangements of the vertical relationships from a game-theoretic perspective.