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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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I study the interaction between optimal procurement and outsourcing of production in small industries. First, two … sellers decide about outsourcing. By outsourcing, a seller loses information about the costs of producing to his supplier … suppliers. The focal equilibrium might exhibit bilateral outsourcing although outsourcing is modeled to have no direct positive …
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