We examine the interplay of endogenous vertical integration and cost-reducing downstream investment in successive …, we establish the following main results: First, vertical integration increases own investment and decreases competitor … investment (intimidation effect). Second, asymmetric equilibria typically involve integrated firms that invest more into …

This paper analyzes whether the financial distress of a firm affects the investment decisions of non … the industry and hence restricting credit access and investment. These average negative effects continue to hold in the …

We show that the standard analysis of vertical relationships transposes directly to investment dynamics. Thus, when a … input to serve a growing but uncertain demand, and if the supplier has market power, investment occurs too late from an … investment option, greater volatility can result in a lower value for both firms. We examine several contractual alternatives to …

This study investigates the strategic disclosure of a downstream firm’s information regarding cost-reducing investment … convey an aggressive investment (i.e., lower marginal costs) to a rival downstream firm when the products are sufficiently … differentiated. Moreover, we show that the downstream firm may disclose its information and pursue its investment at a minimum level …