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Optimal contract orders and relationship-specific investments in vertical organizations
Parlane, Sarah; Ying Yi Tsai - 2013
This paper characterizes the optimal contracts issued to suppliers when delivery is subject to disruptions and when they can invest to reduce such a risk. When investment is contractible dual sourcing is generally optimal because it reduces the risk of disruption. The manufacturer (buyer) either...
Persistent link: https://www.econbiz.de/10010188418
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Exclusionary Contracts
Jing, Ran - 2013
o er a theory of simultaneous contract o ffers that generalizes the "Colonel Blotto" game. Nielsen illustrates the full … buyer. The vertical contracts are complementary, in that each contract relaxes the individual-rationality constraint in the …
Persistent link: https://www.econbiz.de/10013073339
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Managing Relational Contracts
Troya-Martinez, Marta - 2018
Relational contracts are typically modeled as being between a principal and an agent, such as a firm owner and a supplier. Yet in a variety of organizations relationships are overseen by an intermediary such as a manager. Such arrangements open the door for collusion between the manager and the...
Persistent link: https://www.econbiz.de/10012937239
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Vertical Contracts and Entry
Milliou, Chrysovalantou - 2020
We study the implications of different contractual forms in a market with an incumbent upstream monopolist and free downstream entry. We show that traditional conclusions regarding the desirability of linear contracts radically change when entry in the downstream market is endogenous rather than...
Persistent link: https://www.econbiz.de/10012824081
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Relational contracts and trust in a high-tech industry
Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; … - 2021
We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher...
Persistent link: https://www.econbiz.de/10012649766
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Opportunism in Vertical Contracting : A Dynamic Perspective
Do, Jihwan; Miklós-Thal, Jeanine - 2021
This paper proposes a dynamic approach to modeling opportunism in bilateral vertical contracting between an upstream monopolist and competing downstream firms. Unlike previous literature on opportunism which has focused on games in which the upstream firm makes simultaneous secret offers to the...
Persistent link: https://www.econbiz.de/10013250915
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Contract contingency in vertically related markets
Bacchiega, Emanuele; Bonroy, Oliver; Petrakēs, Emmanuēl - 2016
We study the optimal contract choice of an upstream monopolist producing an essential input that may sell to two … vertically differentiated downstream firms. The upstream supplier can offer an exclusive contract to one of the firms or non … upstream supplier and the rival downstream firm. The distribution of bargaining power during the contract terms negotiations is …
Persistent link: https://www.econbiz.de/10011703396
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Transaction costs and the duration of contracts
MacKay, Alexander - 2017
The optimal duration of a supply contract balances the costs of re-selecting a supplier against the costs of being … matched to an inefficient supplier when the contract lasts too long. I develop a structural model of contract duration that …
Persistent link: https://www.econbiz.de/10011928977
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Contract Contingency in Vertically Related Markets
Bacchiega, Emanuele - 2016
We study the optimal contract choice of an upstream monopolist producing an essential input that may sell to two … vertically differentiated downstream firms. The upstream supplier can offer an exclusive contract to one of the firms or non … upstream supplier and the rival downstream firm. The distribution of bargaining power during the contract terms negotiations is …
Persistent link: https://www.econbiz.de/10012982171
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Vertical Contract That Reference Rivals
Liu, Fan - 2017
We study two vertical constraints on pricing which have received little study. A vertical MFN (“VMFN”) refers to an MFN on retail prices that is sought by an upstream manufacturer. A vertical margin constraint (“VMC”) refers to a requirement that the margin earned by a retailer on a...
Persistent link: https://www.econbiz.de/10012967528