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competition for matches may solve hold-up and coordination problems generated by the absence of complete contingent contracts. In … particular, this Paper shows that when matching is assortative and sellers’ investments precede market competition then … competition. These inefficiencies lead to sellers’ under-investments due to a hold-up problem but, when competition is at its peak …
Persistent link: https://www.econbiz.de/10005136606
. Competition from venture capitalists increases corporate venturing activity, the salaries of potential entrepreneurs, and total …
Persistent link: https://www.econbiz.de/10005067369
This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive … to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition … firm is better off encouraging competition when the downstream firms have high bargaining power. We derive implications on …
Persistent link: https://www.econbiz.de/10005497922
We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...
Persistent link: https://www.econbiz.de/10008854478