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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 …
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A manufacturer chooses the optimal retail market structure and bilaterally and secretly contracts with each (homogeneous) retailer. In a classic framework without asymmetric information, the manufacturer sells through a single exclusive retailer in order to eliminate the opportunism problem....
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to about 20% of retailers' variable profits. A counterfactual that restricts firms to only contract on wholesale prices …
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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 …
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We study two vertical constraints on pricing which have received little study. A vertical MFN (“VMFN”) refers to an MFN on retail prices that is sought by an upstream manufacturer. A vertical margin constraint (“VMC”) refers to a requirement that the margin earned by a retailer on a...
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