I study the economic consequences of shifting bargaining power in relational contracts through interventions such as … market power. Existing theories of relational contracts predict that such a power transfer will have no impact on market … contracts - the existence of an enforceable base payment - may not hold. In this case, I show that a transfer of bargaining …

form of vertical coordination. Rather than conventional pre-planting contracts, they issue ‘permits’ to selected cane … processing, and compare processor profits under the probabilistic ex post permit system and ex ante production contracts. The …