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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

News sources and media bias

Pires, Armando José Garcia; Kind, Hans Jarle; … - 2012

relationship as an informal contract based on trust and punishment, where a news source decides if and how much information to …

Persistent link: https://www.econbiz.de/10009580771

Vertical licensing, input pricing, and entry

Bakaouka, Elpiniki; Milliou, Chrysovalantou - 2017

We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...

Persistent link: https://www.econbiz.de/10011597751

Making sense of non-binding retail-price recommendations

Bühler, Stefan; Gärtner, Dennis - 2009

This paper provides a theoretical rationale for non-binding retail price recommendations (RPRs) in vertical supply relations. Analyzing a bilateral manufacturer-retailer relationship with repeated trade, we show that linear relational contracts can implement the surplusmaximizing outcome. If the...

Persistent link: https://www.econbiz.de/10003900887

Quality distortions in vertical relations

Baake, Pio; Schlippenbach, Vanessa von - 2010

downstream firm. In each period, the firms negotiate a delivery contract comprising the quality of the good as well as a non …

Persistent link: https://www.econbiz.de/10003930890

Collusive effects of a monopolist's use of an intermediary to deliver to retailers

Teichmann, Isabel; Schlippenbach, Vanessa von - 2014

A manufacturer contracting secretly with several downstream competitors faces an opportunism problem, preventing it from exerting its market power. In an infinitely repeated game, the opportunism problem can be relaxed. We show that the upstream firm's market power can be restored even further...

Persistent link: https://www.econbiz.de/10010467434

Upfront payments and listing decisions

Baake, Pio (contributor); … - 2008

We analyze the listing decisions of a retailer who may ask her suppliers to make upfront payments in order to be listed. We consider a sequential game with upfront payments being negotiated before short-term delivery contracts. We show that the retailer is more likely to use upfront payments the...

Persistent link: https://www.econbiz.de/10003726104

Manufacturers mergers and product variety in vertically related markets

Milliou, Chrysovalantou; Sandonís, Joel - 2014

We study final product manufacturers’ incentives to introduce new products into the market and how they are affected by a merger among them. We show that when manufacturers distribute their products through multi-product retailers, a manufacturers merger, although it leads to an increase in...

Persistent link: https://www.econbiz.de/10010388531

Spatial competition with capacity constraints and subcontracting

Hunold, Matthias; Muthers, Johannes - 2018

We characterize mixed-strategy equilibria when capacity constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs to supply a customer. Despite prices above costs and excess capacities, each supplier...

Persistent link: https://www.econbiz.de/10011916087

Spatial competition and price discrimination with capacity constraints

Hunold, Matthias; Muthers, Johannes - 2019

We characterize mixed-strategy equilibria when capacity constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs of supplying a customer. Despite prices above costs and excess capacities, each...

Persistent link: https://www.econbiz.de/10012002080