Chen, Yongmin; Sappington, David E. M. - In: American Economic Journal: Microeconomics 3 (2011) 2, pp. 194-220
We extend Philippe Aghion and Patrick Bolton's (1987) classic model to analyze the equilibrium incidence and impact of exclusive contracts in a setting where research and development (R&D) drives industry performance. An exclusive contract between an incumbent supplier and a buyer arises when...