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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
This paper introduces a notion of partial secrecy in bilateral contracting games between one upstream firm and several competing downstream firms. The supplier’s offer quantities are subject to trembles, and each downstream firm observes a noisy signal about the offer received by its...
Persistent link: https://www.econbiz.de/10014256170
We construct a model of market-share contracts with vertical externalities. When a dominant supplier offers a linear … vertical relation and social welfare. Under market-share contracts, the retailer can commit to increase the sales of goods … in market-share contracts even in the absence of exclusionary effects in the upstream market. We also show that such …
Persistent link: https://www.econbiz.de/10013036198
platforms require exclusive contracts, whereby a component cannot be made available on any other platform, many TV sports … programming contracts are designed this way.We study the contract design options of a platform owner offering a screening contract …
Persistent link: https://www.econbiz.de/10012723021
, firms standing in competition always - i.e., independent of the consumers’ valuation - offer bonus contracts. Thus …In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which …
Persistent link: https://www.econbiz.de/10012890631
, firms standing in competition always - i.e., independent of the consumers' valuation - offer bonus contracts. Thus …In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which …
Persistent link: https://www.econbiz.de/10011983621
standing in competition always - i.e., independent of the consumers' valuation - offer bonus contracts. Thus, competition does …In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which …
Persistent link: https://www.econbiz.de/10011917562
monopolist may prefer to trade with wholesale price contracts as well as to give up part of its bargaining power when it is high … downstream entry. We show that traditional conclusions regarding the desirability of linear contracts radically change when entry … price contracts can generate higher aggregate output, consumer surplus, and welfare. In light of this, the upstream …
Persistent link: https://www.econbiz.de/10012824081
its product to final consumers through two differentiated retailers. Throughout the supply chain, contracts are linear and … competition …
Persistent link: https://www.econbiz.de/10012827414
In their seminal article on multilateral vertical contracting, McAfee and Schwartz (1994) argue that nondiscrimination clauses may be ineffective in curbing opportunism and may thus have no bite. This begs the question why nondiscrimination clauses are commonly observed in intermediate-goods...
Persistent link: https://www.econbiz.de/10012718714