An upstream supplier constrained by downstream competition and the threat of demand-side substitution faces a trade-off between maximizing overall joint-profit and extracting surplus. By inducing more intra-brand competition through lower wholesale prices, the supplier makes it less attractive...

In an internal capital market, individual departments may compete for a share of the firm's budget by engaging in wasteful influence activities. We show that firms with more levels of hierarchy may experience lower influence costs than less hierarchical firms, even though the former provide more...