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Zaccour (2008) investigates the behaviour of a marketing channel where firms invest in advertising to increase brand equity, showing that an exogenous twopart tariff cannot be used to replicate the vertically integrated monopolist's performance. I revisit the same model proving the existence of...
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This article investigates downstream firms' ability to collude in a repeated game of competition between supply chains. We show that downstream firms with buyer power can collude more easily in the output market if they also collude on their input supply contracts. More specifically, an implicit...
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We study a one-period supply chain problem consisting of numerous suppliers delivering a homogenous good. Individual supply is uncertain and may exhibit dependencies with other suppliers as well as with the stochastic demand. Assuming that reliability of supply represents an economic value for...
Persistent link: https://www.econbiz.de/10011457022
Activism seeking to improve labor conditions in global supply chains has led transnational corporations to adopt codes of conduct and monitor suppliers for compliance, but it is unclear whether these formal organizational structures raise labor standards. Drawing on thousands of audits conducted...
Persistent link: https://www.econbiz.de/10011873339
Improving a company's bargaining position is often cited as a chief motivation to vertically integrate with suppliers. This paper expands on that view in building a new theory of vertical integration. In my model firms integrate to gain bargaining power against other suppliers in the production...
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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 captures this tradeoff and provide an empirical strategy...
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