Locational competition means that the immobile factors of production in a country compete for internationally mobile capital and technology. Locational competition influences the restraint set of national players and redefines their opportunity costs. Thus, the bargaining position of the trade...

In this paper we consider the impact of vertical integration on a retailer's choices of product variety and specific, brand-supporting investment. In an incomplete contract environment, vertical merger encourages investment in integrated supply, and foreclosure of non-integrated manufacturers....