Motiram, Sripad; Robinson, James A. - In: Review of Development Economics 14 (2010) 2, pp. 282-301
In this paper, we suggest a new rationale for the existence of interlinked contracts in the agrarian economies of developing countries. Using the framework of an infinitely repeated game with discounting, we show that interlinked contracts can help the dominant parties to collude, in cases where...