Bacchiega, Emanuele; Bonroy, Olivier; Mabrouk, Rania - In: Economics Letters 121 (2013) 1, pp. 137-140
In this paper we show that, in the presence of buyer and seller power, a monopolist can enter into a costly contractual relationship with a low-quality supplier with the sole intention of improving its bargaining position relative to a high-quality supplier, without ever selling the good...
