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 …

price, and then to the retail price. The type of vertical agreement firms contract upon as well as their relative bargaining …

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 …