Kamien, Morton I.; Li, Lode; Samet, Dov - In: RAND Journal of Economics 20 (1989) 4, pp. 553-567
We investigate how the possibility of subsequently subcontracting production to each other influences rivals' initial competition for a contract or a market as a two-stage game. In its first stage, the two firms engage in price competition to supply a contract or a market. In the second stage,...