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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...
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A manufacturer chooses the optimal retail market structure and bilaterally and secretly contracts with each (homogeneous) retailer. In a classic framework without asymmetric information, the manufacturer sells through a single exclusive retailer in order to eliminate the opportunism problem....
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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...
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Throughout history, vertical merger waves have played a crucial role in shaping industries and market structures. However, opinions on the competitive and welfare effects associated with this phenomenon differ. Some argue that vertical merger waves increase market power and enable the exclusion...
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