This article investigates downstream firms' ability to collude in a repeated game of competition between supply chains. We show that downstream firms with buyer power can collude more easily in the output market if they also collude on their input supply contracts. More specifically, an implicit...

In a dynamic game between N retailers and a large number of suppliers, I show that inefficient contracting emerges as a mechanism to implement collusion among retailers, building on the natural 'complementarity' between retail and wholesale prices. When efficient collusion is not sustainable,...

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...