This paper considers a model with two competing supply chains where production costs are private information within a supply chain, but manufacturers can decide to share this information with the rival manufacturer. In contrast to existing literature, we study bottom-up negotiations, where...

This paper highlights the rationale for exclusive territories in a model of repeated interaction between competing supply chains. We show that with observable contracts exclusive territories have two countervailing effects on manufacturers' incentives to sustain tacit collusion. First, granting...